ACC 201 Review Problems for 5.7.

Prepare the journal entries for Moon Company for the month of December:

12/1 Sold $800 of merchandise to L. Wood, terms 1/15, net/40, FOB Destination; cost of merchandise was $350

12/3 The appropriate party paid $50 for shipping on 12/1 transaction

12/5 Purchased $5,600 of inventory from ABC Enterprises, 2/10, net/30; FOB Shipping point

12/8 L. Wood returned $100 of merchandise for credit; cost of merchandise returned was $45

12/10 The appropriate party paid $180 for shipping on 12/5 transaction

12/13 Received the balance due from L. Wood

12/20 Paid ABC Enterprises the balance due