Question
From the book Accounting Principles by Jerry Weygandt, 10th Edition, Chapter 5 P5-1A OQuinn Co. distributes suitcases to retail stores and extends credit terms of
From the book "Accounting Principles by Jerry Weygandt, 10th Edition", Chapter 5
P5-1A OQuinn Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, OQuinns inventory consisted of suitcases costing $1,200. During the month of July, the following merchandising transactions occurred.
July 1 Purchased suitcases on account for $1,800 from Emerson Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $100 for freight on this date.
3 Sold suitcases on account to Straume Satchels for $2,000. The cost of suitcases sold is $1,200.
9 Paid Emerson Manufacturers in full.
12 Received payment in full from Straume Satchels.
17 Sold suitcases on account to The Going Concern for $1,800. The cost of the suitcases sold was $1,080.
18 Purchased suitcases on account for $1,900 from Hume Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of $125 for freight on this date.
20 Received $300 credit (including freight) for suitcases returned to Hume Manufacturers.
21 Received payment in full from The Going Concern.
22 Sold suitcases on account to Desmonds for $2,250. The cost of suitcases sold was $1,350.
30 Paid Hume Manufacturers in full.
31 Granted Desmonds $200 credit for suitcases returned costing $120.
OQuinns chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.
Instructions Journalize the transactions for the month of July for OQuinn using a perpetual inventory system.
(Page 247).
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