Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

  1. Record the purchases of goods on account in the three-column purchases journal.
  2. Record the sales of merchandise on account in a sales journal.
  3. 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.
  4. Total, prove, and rule the journals as of January 31.
  5. Post the column totals from the special journals to the proper general ledger accounts.
  6. Prepare a schedule of accounts payable for January 31.
  7. 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?

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

Step: 3

blur-text-image

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

Auditing Theory And Practice

Authors: Jerry R. Strawser, Robert H. Strawser

9th Edition

0873939336, 978-0873939331

More Books

Students also viewed these Accounting questions