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At the beginning of June 2024, Swifty Distributing Company's ledger showed Cash $17,000, Merchandise Inventory $5,800, and D. Swifty, Capital $22,800. During the month of
At the beginning of June 2024, Swifty Distributing Company's ledger showed Cash $17,000, Merchandise Inventory $5,800, and D. Swifty, Capital $22,800. During the month of June, the company had the following selected transactions: June 1 Purchased $8,800 of merchandise inventory from Sun Supply Co., terms 1/15,n/30, FOB destination. 2 The correct company paid $200 cash for freight charges on the June 1 purchase. 5 Sold merchandise inventory to Moose Jaw Retailers for $11,000. The cost of the merchandise was $7,500 and the terms were 2/10,n/30,FOB destination. 6 Issued a $750 credit for merchandise returned by Moose Jaw Retailers. The merchandise originally cost $511 and was returned to inventory. 6 The correct company paid $290 freight on the June 5 sale. 7 Purchased $840 of supplies for cash. 10 Purchased $4,250 of merchandise inventory from Fey Wholesalers, terms 2/10,n/30, FOB shipping point. 10 The correct company paid $150 freight costs on the purchase from Fey Wholesalers. 12 Received a $250 credit from Fey Wholesalers for returned merchandise. 14 Paid Sun Supply Co. the amount due. 15 Collected the balance owing from Moose Jaw Retailers. 19 Sold merchandise for $7,200 cash. The cost of this merchandise was $4,500. 20 Paid Fey Wholesalers the balance owing from the June 10 purchase. 25 Made a $480 cash refund to a cash customer for merchandise returned. The returned merchandise had a cost of $300. The merchandise was damaged and could not be resold. 30 Sold merchandise to Bauer \& Company for $4,100, terms n/30, FOB shipping point. Swifty's cost for this merchandise was $2,800. Merchandise Inventory DateExplanationRef.June1DebitBalanceCreditVBalance 151012141910J1J1J1J1J1J1 Sales Returns and Allowances Date Explanation Ref. Debit J1 25 J1 Sales Discounts Date Explanation Ref. Debit J1 June 15 Cost of Goods Sold Date Explanation Ref. Debit J1 6 J1 19 J1 30 J1
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