Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September,

image text in transcribed
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Purchased calculators from Dragoo Co. at a total cost of $3, 300. terms n/30 Paid freight of $75 on calculators purchased from Dragoo CO. Returned calculators to Dragoo Co. for $66 because they did not meet specifications Sold calculators costing $520 for $690 to Frer Book Store, terms n/30. Granted credit of $45 to Fryer Book Store for the return of one calculator that was not calculator ordered. The calculator cost $34. Sold calculators costing $570 for $760 to Heasley Card Shop, terms n/30. Instructions: Journalize the September transactions (in color). The following transactions are for Solarte Company: On December 3, Solarte Company sold $700,000 of merchandise to Rooney Co., terms 1/10, n/30.The cost of the merchandise sold was $380,000 On December 8, Rooney Co. was granted an allowance of $25,000 for merchandise purchased on December 3 On December 13, Solarte Company received the balance due from Rooney Co Instructions (in color): Prepare the journal entries to record these transactions on the books of Solarte Company. Solarte uses a perpetual inventory system. Assume that Solarte Company received the balance due from Rooney Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record he receipt of payment on January 2. Krey Distributing Company completed these merchandising transactions in the month of April Apr. Purchased merchandise on account from Am-Bev Co. $8, 700, terms 2/10, n'30 Sold merchandise on account $6,000, terms 2/10, n/30. The cost of the merchandise sold was $3, 700. Paid $200 freight on April 4 sale Received credit rom Am -Bev Co. for merchandise returned $400 Paid Am-Bev Co in full. Received collections in full from customers billed on April 4. Purchased merchandise for cash $4.700 Received refund from supplier for returned merchandise on cash purchase of April 14, $500 8 Purchased merchandise from Lohr Distributors $5, 500, terms 2/10, n/30. Paid freight on April 18 purchase $180 Sold merchandise for cash $8.300. The cost of the merchandise sold was $5, 580. Purchased merchandise for cash $2, 300 Paid Lohr Distributors in full. Made refunds to cash customers for returned merchandise $180. The returned merchandise had a cost of $120 Sold merchandise on account $3.980, terms n/30. The cost of the merchandise sold was $2, 500 Journalize the transactions using a perpetual inventory system (in color)

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_2

Step: 3

blur-text-image_3

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

Automotive Process Audits Preparations And Tools Practical Quality Of The Future

Authors: D. H. Stamatis

1st Edition

036775939X, 978-0367759391

More Books

Students also viewed these Accounting questions