Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 00 un 9 Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory system. Omit narratives but include

image text in transcribed
4 00 un 9 Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory system. Omit narratives but include calculations if required. Mar 2 Purchased merchandise from Ludwar company under the following terms: $4,000 invoice price, 1/15, n/25, FOB factory. 2 Sold merchandise to Monday Co. for $2,100 under terms of 1/15, n/30, FOB shipper. The merchandise had cost $945. 3 Paid $350 for shipping charges on the purchase of March 2. 4 Returned to Ludwar Company unacceptable merchandise that had an invoice price of $600. Sold merchandise to Tuesday Ltd for $4,200 under terms of 2/15, n/30, FOB destination. The merchandise had cost $2,310. 5 Paid shipping costs of $300 to deliver goods to Tuesday Ltd. Monday Co. returned merchandise from the March 2 sale that had cost $320, and had been sold for $180. (The merchandise was returned to inventory) Tuesday Ltd complained that some of the merchandise in the March 4 sale was damaged. Issued a credit memorandum for an allowance in the amount of $100. 17 Sent a cheque to Ludwar Company for the March 2 purchase, net of retumed merchandise and applicable discount. 18 Purchased merchandise from Rempel Corp. under the following terms: $4,000 invoice price, 1/10, 1/30, FOB destination 18 Received payment from Tuesday Ltd, net of allowance and discount, for the March 4 sale. 21 After negotiations, received from Rempel Corp. a $200 allowance on the purchase of March 18. 28 Sent a cheque to Rempel Corp. paying for the March 18 purchase, net of discount and allowance. Purchased merchandise from Mackay Company for cash under the following terms: List price $3,000, trade discount 60%. 29 Received payment from Monday Co. for balance owing on the March 2 sale. 31 Counted inventory, inventory on hand is $127.250. Balance in the inventory account is $136,800. 29

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

Corporate Fraud Prevention And Detection

Authors: Joseph T. Wells

5th Edition

1119351987, 9781119351986

More Books

Students also viewed these Accounting questions

Question

4. When is it appropriate to show grace toward others?

Answered: 1 week ago