Following are the merchandising transactions for chiltonsystems
1. On November 1, Chilton systems purchases merchandise for$2000 on credit with terms of 2/5,n/30, FOB shipping point; invoicedated November 1st
2.On november 5, Chilton systems pays cash for the november 1stpurchase
3. On november 7, chilton systems discovers and returns $125 ofdefective merchandise purchased on november 1st for a cashrefund.
4.on november 10, chilton systems pays $100 cash fortransportation costs with the november 1st purchase
5. On November 13, Chilton sysytems sells merchandise for $2160on credit. The cost of the merchandise is $1080
6.On November 16, the customer returns merchandise from theNovember 1st transaction. The returned items are priced at $235 andcost $118; the items were not damaged and were returned toinventory.
Journalize the above merchandising transactions for ChiltonSystems assuming it uses a perpetual inventory system
Following are the merchandising transactions for chiltonsystems
1. On November 1, Chilton systems purchases merchandise for$2000 on credit with terms of 2/5,n/30, FOB shipping point; invoicedated November 1st
2.On november 5, Chilton systems pays cash for the november 1stpurchase
3. On november 7, chilton systems discovers and returns $125 ofdefective merchandise purchased on november 1st for a cashrefund.
4.on november 10, chilton systems pays $100 cash fortransportation costs with the november 1st purchase
5. On November 13, Chilton sysytems sells merchandise for $2160on credit. The cost of the merchandise is $1080
6.On November 16, the customer returns merchandise from theNovember 1st transaction. The returned items are priced at $235 andcost $118; the items were not damaged and were returned toinventory.
Journalize the above merchandising transactions for ChiltonSystems assuming it uses a perpetual inventory system
Related questions
Following are the merchandising transactions for Dollar Store.
| Nov. | 1 | Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. | ||
| 5 | Dollar Store pays cash for the November 1 purchase. | |||
| 7 | Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. | |||
| 10 | Dollar Store pays $75 cash for transportation costs for the November 1 purchase. | |||
| 13 | Dollar Store sells merchandise for $1,620 with terms n/30. The cost of the merchandise is $810. | |||
| 16 | Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $300 and cost $150; the items were not damaged and were returned to inventory. |
Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.
Please fill out the table below with the given information.
The following were selected from among the transactionscompleted by Babcock Company during November of the currentyear:
Nov. | 3 | Purchased merchandise on account from Moonlight Co., list price$85,000, trade discount 25%, terms FOB destination, 2/10, n/30. |
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4 | Sold merchandise for cash, $37,680. The cost of the merchandisesold was $22,600. | |
5 | Purchased merchandise on account from Papoose Creek Co.,$47,500, terms FOB shipping point, 2/10, n/30, with prepaid freightof $810 added to the invoice. | |
6 | Returned $13,500 ($18,000 list price less trade discount of 25%)of merchandise purchased on November 3 from Moonlight Co. | |
8 | Sold merchandise on account to Quinn Co., $15,600 with termsn/15. The cost of the merchandise sold was $9,400. | |
13 | Paid Moonlight Co. on account for purchase of November 3, lessreturn of November 6. | |
14 | Sold merchandise on VISA, $236,000. The cost of the merchandisesold was $140,000. | |
15 | Paid Papoose Creek Co. on account for purchase of November5. | |
23 | Received cash on account from sale of November 8 to QuinnCo. | |
24 | Sold merchandise on account to Rabel Co., $56,900, terms 1/10,n/30. The cost of the merchandise sold was $34,000. | |
28 | Paid VISA service fee of $3,540. | |
30 | Paid Quinn Co. a cash refund of $6,000 for returned merchandisefrom sale of November 8. The cost of the returned merchandise was$3,300. |
Journalize the transactions. Refer to the Chart of Accountsfor exact wording of account titles.
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journalize the transactions. Refer to the Chart of Accountsfor exact wording of account titles.
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Palisade Creek Co. is a merchandising business that uses theperpetual inventory system. The account balances for Palisade CreekCo. as of May 1, 2016 (unless otherwise indicated), are asfollows:
| 110 | Cash | $ 83,600 |
| 112 | Accounts Receivable | 233,900 |
| 115 | Merchandise Inventory | 624,400 |
| 116 | Estimated Returns Inventory | 28,000 |
| 117 | Prepaid Insurance | 16,800 |
| 118 | Store Supplies | 11,400 |
| 123 | Store Equipment | 569,500 |
| 124 | Accumulated Depreciation-Store Equipment | 56,700 |
| 210 | Accounts Payable | 96,600 |
| 211 | Salaries Payable | â |
| 212 | Customers Refunds Payable | 50,000 |
| 310 | Lynn Tolley, Capital, June 1, 2015 | 685,300 |
| 311 | Lynn Tolley, Drawing | 135,000 |
| 312 | Income Summary | â |
| 410 | Sales | 5,069,000 |
| 510 | Cost of Merchandise Sold | 2,823,000 |
| 520 | Sales Salaries Expense | 664,800 |
| 521 | Advertising Expense | 281,000 |
| 522 | Depreciation Expense | â |
| 523 | Store Supplies Expense | â |
| 529 | Miscellaneous Selling Expense | 12,600 |
| 530 | Office Salaries Expense | 382,100 |
| 531 | Rent Expense | 83,700 |
| 532 | Insurance Expense | â |
| 539 | Miscellaneous Administrative Expense | 7,800 |
During May, the last month of the fiscal year, the followingtransactions were completed:
Record the following transactions on page 20 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.
| May | 1 | Paid rent for May, $5,000. |
| 3 | Purchased merchandise on account from Martin Co., terms 2/10,n/30, FOB shipping point, $36,000. | |
| 4 | Paid freight on purchase of May 3, $600. | |
| 6 | Sold merchandise on account to Korman Co., terms 2/10, n/30,FOB shipping point, $68,500. The cost of the merchandise sold was$41,000. | |
| 7 | Received $22,300 cash from Halstad Co. on account. | |
| 10 | Sold merchandise for cash, $54,000. The cost of the merchandisesold was $32,000. | |
| 13 | Paid for merchandise purchased on May 3. | |
| 15 | Paid advertising expense for last half of May, $11,000. | |
| 16 | Received cash from sale of May 6. | |
| 19 | Purchased merchandise for cash, $18,700. | |
| 19 | Paid $33,450 to Buttons Co. on account. | |
| 20 | Paid Korman Co. a cash refund of $13,230 for returnedmerchandise from sale of May 6. The invoice amount of the returnedmerchandise was $13,500 and the cost of the returned merchandisewas $8,000. |
Record the following transactions on page 21 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.
| May | 20 | Sold merchandise on account to Crescent Co., terms 1/10, n/30,FOB shipping point, $110,000. The cost of the merchandise sold was$70,000. |
| 21 | For the convenience of Crescent Co., paid freight on sale ofMay 20, $2,300. | |
| 21 | Received $42,900 cash from Gee Co. on account. | |
| 21 | Purchased merchandise on account from Osterman Co., terms 1/10,n/30, FOB destination, $88,000. | |
| 24 | Returned of damaged merchandise purchased on May 21, receivinga credit memo from the seller for $5,000. | |
| 26 | Refunded cash on sales made for cash, $7,500. The cost of themerchandise returned was $4,800. | |
| 28 | Paid sales salaries of $56,000 and office salaries of$29,000. | |
| 29 | Purchased store supplies for cash, $2,400. | |
| 30 | Sold merchandise on account to Turner Co., terms 2/10, n/30,FOB shipping point, $78,750. The cost of the merchandise sold was$47,000. | |
| 30 | Received cash from sale of May 20 plus freight paid on May21. | |
| 31 | Paid for purchase of May 21, less return of May 24. |
