Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 Exercise 5-3 Prepare journal entries to record the following transactions for a retail store: March Purchased merchandise from Alfa Company under the following terms:

image text in transcribed
2 Exercise 5-3 Prepare journal entries to record the following transactions for a retail store: March Purchased merchandise from Alfa Company under the following terms: $1,800 invoice price, 2/15, 1/60, FOB factory. Paid $125 for shipping charges on the purchase of March 2 Returned to Alfa Company unacceptable merchandise that had an invoice price of $300 Sent a cheque to Alfa Company for the March 2 purchase, net of the dis count and the returned merchandise March Purchased merchandise from Bravo Company under the following terms: $2,500 invoice price, 2/10, 1/30, FOB destination 21 After brief negotiations, received a credit memorandum from Bravo Company granting a $700 allowance on the purchase of March 18. 28 Sent a cheque to Bravo Company paying for the March 18 purchase, net of the discount and the allowance. On May 12, Wilcox Company accepted delivery of $20,000 of merchandise and received an invoice dated May 11, with terms of 3/10, 1/30, FOB Garner Company's factory. When the goods were delivered. Wilcox Company paid $185 to Express Shipping Service for the delivery charges on the merchandise. The next day, Wilcox Company returned $800 of defective goods to the seller, which received them one day later. On May 21, Wilcox Company mailed a cheque to Garner Company for the amount owed on that date. It was received the following day Required: a. Present the journal entries that Wilcox Company should record for these transactions. b. Present the journal entries that Garner Company should record for these transactions Sandra's Store purchased merchandise from a manufacturer with an invoice price of $11,000 and credit terms of 3/10, 1/60, and paid within the discount period Required: a Prepare the journal entries that the purchaser should record for the purchase and payment b. Prepare the journal entries that the seller should record for the sale and collection Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 8% and paid it back on the last day of the credit period. Calculate how much the buyer saved by following this strategy. (Use a 365-day year.) The following information appeared in a company's income statement: Sales $300,000 Sales returns 15,000 Sales discounts 4500 Beginning inventory 25,000 Purchases 280,000 Purchases returns and allowances 6.000 Purchases discounts 3,600 Transportation in 11,000 Gross profit from sales 105,000 Net income S5,000 Required: Calculate the (a) total operating expenses, (b) cost of goods sold, and ending inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What is job rotation ?

Answered: 1 week ago

Question

4. Support and enliven your speech with effective research

Answered: 1 week ago

Question

3. Choose an appropriate topic and develop it

Answered: 1 week ago