Question
BigW Store completed the following merchandising transactions in the month of July. At the beginning of July, the ledger of BigW showed cash of $10000
BigW Store completed the following merchandising transactions in the month of July. At the beginning of July, the ledger of BigW showed cash of $10000 and owner's capital of $10000.
July 1 Purchased merchandise on account from Coles Wholesale Store $3700, FOB destination, terms 2/10, n/30. The appropriate party also made cash payment of $60 for the freight on this date.
July 5 Sold merchandise on account $6200, terms 1/15, n/30, FOB Shipping Point. The cost of the merchandise sold was $5100. Freight of $80 was paid by the appropriate party on this date.
July 7 Received credit from Coles Wholesale Store for merchandise returned $450.
July 12Paid Coles Wholesale Store in full.
July 15Purchased merchandise on account from Harvest Meat Company $2800, FOB Shipping Point, terms 1/10, n/30. The appropriate party also made cash payment of $100 for the freight on this date.
Instructions
Journalize the transactions using a perpetual inventory system.
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
