Journalize the following transactions that occurred in November 2015 for Thelmas Amusement. No explanations are needed. Identify
Question:
Journalize the following transactions that occurred in November 2015 for Thelma’s Amusement. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name.
Nov. 4 Purchased merchandise inventory on account from Valencia Company, $ 9,600. Terms 3/10, n/EOM, FOB shipping point.
6 Paid freight bill of $ 120 on November 4 purchase.
8 Returned half the inventory purchased on November 4 from Valencia Company.
10 Sold merchandise inventory for cash, $ 1,200. Cost of goods, $ 700. FOB destination.
11 Sold merchandise inventory to Gilmore Corporation, $ 10,250, on account, terms of 1/10, n/EOM. Cost of goods, $ 5,500. FOB shipping point.
12 Paid freight bill of $ 40 on November 10 sale.
13 Sold merchandise inventory to Callahan Company, $ 9,900, on account, terms of 2/15, n/45. Cost of goods, $ 5,300. FOB shipping point.
14 Paid the amount owed on account from November 4, less return and discount.
16 After negotiations, granted a $ 250 allowance to Gilmore Corporation on November 11 sale.
17 Received defective inventory as a sales return from the November 13 sale, $ 600. Cost of goods, $ 450.
18 Purchased inventory of $ 4,100 on account from Russo Corporation. Payment terms were 2/10, n/30, FOB destination.
20 Received cash from Gilmore Corporation, less allowance and discount.
26 Paid amount owed on account from November 18, less discount.
28 Received cash from Callahan Company, less return and discount.
29 Purchased inventory from Suarez Corporation for cash, $ 12,000, FOB shipping point. Freight in paid to shipping company, $ 200.
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Date Accounts and Explanation Debit Credit Nov 4 Merchandise Inventory 9600 Accounts Payable x Valen...View the full answer
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
