Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

24 Paid Leight Co. the balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19,

image text in transcribed
image text in transcribed
24 Paid Leight Co. the balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $4,800 to Creek Co. for $7.000 under credit terms of 2/10, n/60. uly 30, Dr Cash $980 FOB shipping point, invoice dated July 31. Prepare journal entries to record the following merchandising transactions of Sheng Company, which Problem applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable: for Preparing journal entr example, record the purchase on August I in Accounts Payable-Arotek.) 5-2A vable and payable; for Preparing journal entries fo 0 merchandising activities- perpetual system P1 P2 Aug. I Purchased merchandise from Arotek Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 4 At Arotek's request, Sheng paid $200 cash for freight charges on the August 1 purchase, reduc- ing the amount owed to Abilene. Sold merchandise to Laird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. Purchased merchandise from Waters Co FOB shipping point, invoice dated August 8. The invoice showed that at Sheng's request 5 8 rporation for $5,400 under credit terms of 1/10, n/45, Waters paid the $140 shipping charges and added that amount to the bill. (Hint:Discounts are not applied to freight and shipping charges.) 9 Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp. 10 Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for Check Aug. 9, Dr. Deliv Expense, $125 $600. The merchandise was restored to inventory After negotiations with Waters Corporation concerning problems with the merchandise pur- chased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $700. 12

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

The Audit Value Factor Making Managements Head Turn Internal Audit And IT Audit Series

Authors: Daniel Samson

1st Edition

1138198129, 978-1138198128

More Books

Students also viewed these Accounting questions

Question

Acceptance of the key role of people in this process of adaptation.

Answered: 1 week ago

Question

preference for well defined job functions;

Answered: 1 week ago