Apr. 2.

Swan Company sold merchandise on account to Bird Company, $17,400, terms FOB shipping point, 1/10, n/30. Swan Company paid freight of $495, which was added to the invoice. The cost of the merchandise sold was $11,000.

8.

Swan Company sold merchandise on account to Bird Company, $26,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $15,600.

8.

Swan Company paid freight of $810 for delivery of merchandise sold to Bird Company on April 8.

12.

Bird Company paid Swan Company for purchase of April 2.

18.

Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise.

23.

Bird Company paid Swan Company for purchase of April 8.

24.

Swan Company sold merchandise on account to Bird Company, $10,800, terms FOB shipping point, n/45. The cost of the merchandise sold was $6,500.

26.

question 2

Purchase-Related Transactions

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $22,900, terms n/30. The cost of the merchandise sold is $13,700. Showcase Co. issues a credit memo for $3,900 as a price adjustment prior to Balboa Co. paying the original invoice.

a. Journalize Balboa Co.s entry for the purchase. If an amount box does not require an entry, leave it blank.

	Merchandise Inventory	fill in the blank 7170bdfa000d013_2	fill in the blank 7170bdfa000d013_3
	Accounts Receivable	fill in the blank 7170bdfa000d013_5	fill in the blank 7170bdfa000d013_6

Feedback

a. Record the transaction from the buyer's perspective. A purchase increases inventory and the amount that is owed on account.

b. Journalize Balboa Co.s entry for the credit memo. If an amount box does not require an entry, leave it blank.

	Cost of Merchandise Sold	fill in the blank 6403ddfabfb9fd0_2	fill in the blank 6403ddfabfb9fd0_3
	Merchandise Inventory	fill in the blank 6403ddfabfb9fd0_5	fill in the blank 6403ddfabfb9fd0_6

Feedback

b. A return reduces Merchandise Inventory and Accounts Payable in the buyer's records.

c. Journalize Balboa Co.s entry for the payment of the invoice. If an amount box does not require an entry, leave it blank.

	Accounts Payable-Showcase Co.	fill in the blank e66e8101005300c_2	fill in the blank e66e8101005300c_3
	Cash question 3 Purchases Transactions Xanadu Company purchased merchandise on account from a supplier for $10,100, terms 2/10, n/30. Xanadu Company returned $1,800 of the merchandise and received full credit. a. If Xanadu Company pays the invoice within the discount period, what is the amount of cash required for the payment?

Bird Company paid freight of $350 on April 24 purchase from Swan Company.