Flag question: Question 12

Question 1213 pts

The following selected transactions were completed by Wyndham Co. during May of the current year:

Date

Transaction

May 3

Purchased merchandise on account from Paddington Co., list price $100,000, trade discount 15%, terms FOB destination point, 3/10, n/30, with freight cost is $1,000.

May 7

Returned merchandise with an invoiced amount of $ 5,000 purchased on May 3.

May 13

Paid Paddington Co. on account for purchase of May 3 less return made on May 7.

May 15

Sold merchandise on account to Miwawi Co., $45,000, terms n/15. The cost of the goods sold was $30,000

Required:

Journalize the transactions using the

perpetual system. (5.5 marks)

periodic system. ( 5 marks)

Under the perpetual system, post the entries to the Account Payable-Paddington Do not write up the other accounts. Then balance-off at the end of March. (2.5)