Buchanan Company (buyer) and Simpson, Incorporated (seller), engaged in the following transactions during February 20X1. Simpson, Incorporated
Question:
Buchanan Company (buyer) and Simpson, Incorporated (seller), engaged in the following transactions during February 20X1. Simpson, Incorporated operates in a state with no sales tax.\ \ Buchanan Company\ \ DATE TRANSACTIONS\ February 10, 20X1 Purchased merchandise for $5,200 from Simpson, Incorporated, Invoice 1980, terms 1/10, n/30.\ February 13, 20X1 Received Credit Memorandum 230 from Simpson, Incorporated, for damaged merchandise totaling $300 that was returned the goods were purchased on Invoice 1980, dated February 10.\ February 19, 20X1 Paid amount due to Simpson, Incorporated, for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.\ Simpson, Incorporated\ \ DATE TRANSACTIONS\ February 10, 20X1 Sold merchandise for $5,200 on account to Buchanan Company, Invoice 1980, terms 1/10, n/30. The cost of the merchandise sold was $4,200.\ February 13, 20X1 Issued Credit Memorandum 230 to Buchanan Company for damaged merchandise totaling $300 that was returned the goods were purchased on Invoice 1980, dated February 10. The cost of the returned goods was $240.\ February 19, 20X1 Received payment from Buchanan Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.\ Both companies use the perpetual inventory system. Journalize the transactions above in a general journal for both Buchanan Company and Simpson, Incorporated.
College Accounting A Contemporary Approach
ISBN: 9781260780352
5th Edition
Authors: David Haddock, John Price, Michael Farina