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Fashion Standards is a retail clothing store. Sales of merchandise and purchases of goods on account for January 20X1, the first month of operations, appear
Fashion Standards is a retail clothing store. Sales of merchandise and purchases of goods on account for January 20X1, the first month of operations, appear below. INSTRUCTIONS
- Record the purchases of goods on account in the three-column purchases journal.
- Record the sales of merchandise on account in a sales journal.
- Post the entries from the purchases journal and the sales journal to the individual accounts in the accounts payable and accounts receivable subsidiary ledgers. Use the following account numbers:
- Accounts Receivable 111
- Accounts Payable 205
- Sales Tax Payable 231
- Sales 401
- Purchases 501
- Freight In 502
- All customers have n/30 credit terms.
- Total, prove, and rule the journals as of January 31.
- Post the column totals from the special journals to the proper general ledger accounts.
- Prepare a schedule of accounts payable for January 31.
- Prepare a schedule of accounts receivable for January 31.
PURCHASES OF GOODS ON ACCOUNT | ||
Jan. | 3 | Purchased dresses for $4,920 plus a freight charge of $120 from Fashion Expo, Invoice 101, dated December 26; the terms are net 30 days. |
5 | Purchased handbags for $3,660 plus a freight charge of $110 from Tru Totes & Co., Invoice 223, dated December 28; the terms are 2/10, n/30. | |
7 | Purchased blouses for $2,360 plus a freight charge of $90 from Extreme Fashions, Invoice 556, dated January 3; the terms are 2/10, n/30. | |
9 | Purchased casual pants for $2,860 from Comfy Casuals, Invoice 110, dated January 5; terms are n/30. | |
12 | Purchased business suits for $6,910 plus a freight charge of $190 from Professional Wears, Invoice 104, dated January 9; the terms are 2/10, n/30. | |
18 | Purchased shoes for $2,980 plus freight of $110 from City Walks, Invoice 118, dated January 14; the terms are n/60. | |
25 | Purchased hosiery for $1,070 from Silky Legs Express, Invoice 1012, dated January 20; the terms are 2/10, n/30. | |
29 | Purchased scarves and gloves for $1,600 from Comfy Casuals, Invoice 315, dated January 26; the terms are n/30. | |
31 | Purchased party dresses for $7,880 plus a freight charge of $170 from Special Occasions Dress Shop, Invoice 1044, dated January 27; the terms are 2/10, n/30. | |
SALES OF MERCHANDISE ON ACCOUNT | ||
Jan. | 4 | Sold two dresses to Vivian Cho; issued Sales Slip 101 for $600 plus $48 sales tax. |
5 | Sold a handbag to Dina Bates; issued Sales Slip 102 for $500 plus $40 sales tax. | |
6 | Sold four blouses to Julia Adams; issued Sales Slip 103 for $450 plus $36 sales tax. | |
10 | Sold casual pants and a blouse to Cheryl Scott; issued Sales Slip 104 for $550 plus $44 sales tax. | |
14 | Sold a business suit to Alleen De Revere; issued Sales Slip 105 for $450 plus $36 sales tax. | |
17 | Sold hosiery, shoes, and gloves to Sasha Ramirez; issued Sales Slip 106 for $525 plus $42 sales tax. | |
21 | Sold dresses and scarves to Elaine Patterson; issued Sales Slip 107 for $1,275 plus $102 sales tax. | |
24 | Sold a business suit to Andrea Aguilar; issued Sales Slip 108 for $575 plus $46 sales tax. | |
25 | Sold shoes to Tracy Mai; issued Sales Slip 109 for $450 plus $36 sales tax. | |
29 | Sold a casual pants set to Toni Garcia; issued Sales Slip 110 for $475 plus $38 sales tax. | |
31 | Sold a dress and handbag to Linda Martin; issued Sales Slip 111 for $1,375 plus $110 sales tax. | |
Analyze:
What is the net delivered cost of purchases for the month of January?
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