Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GL0401 - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Wright's, which uses the the gross

image text in transcribed
GL0401 - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Wright's, which uses the the gross method. (Hint: It will help to identify each receivable and payable; for example, record the p Payable-Martin.) ok int Jul. 1 Purchased merchandise from Martin Company for $9,600 under credit terms of 1/1 invoice dated July 1. Jul. 2 Sold merchandise to clark Co. for $2,700 under credit terms of 2/10, n/60, FOB July 2. The merchandise had cost $1,620. Jul. 3 Paid $845 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $3,200 for $5,300 cash. Jul. 9 Purchased merchandise from Mitchell Co. for $4,000 under credit terms of 2/15, n/ dated July 9. Jul. 11 Returned $800 of merchandise purchased on July 9 from Mitchell Co. and debited i amount. Jul. 12 Received the balance due from Clark Co. for the invoice dated July 2, net of the dis- Jul. 16 Paid the balance due to Martin Company within the discount period. Jul. 19 Sold merchandise that cost $3,400 to Gonzalez Co. for $4,800 under credit terms point, invoice dated July 19. Jul. 21 Gave a price reduction (allowance) of $1,000 to Gonzalez Co. for merchandise so Gonzalez's accounts receivable for that amount. Jul. 24 Paid Mitchell Co. the balance due, net of discount. Jul. 30 Received the balance due from Gonzalez Co. for the invoice dated July 19, net of disc Jul. 31 Sold merchandise that cost $6,400 to Clark Co. for $10,600 under credit terms of 2/10 invoice dated July 31. ences GL0401 - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Wright's, which uses the the gross method. (Hint: It will help to identify each receivable and payable; for example, record the p Payable-Martin.) ok int Jul. 1 Purchased merchandise from Martin Company for $9,600 under credit terms of 1/1 invoice dated July 1. Jul. 2 Sold merchandise to clark Co. for $2,700 under credit terms of 2/10, n/60, FOB July 2. The merchandise had cost $1,620. Jul. 3 Paid $845 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $3,200 for $5,300 cash. Jul. 9 Purchased merchandise from Mitchell Co. for $4,000 under credit terms of 2/15, n/ dated July 9. Jul. 11 Returned $800 of merchandise purchased on July 9 from Mitchell Co. and debited i amount. Jul. 12 Received the balance due from Clark Co. for the invoice dated July 2, net of the dis- Jul. 16 Paid the balance due to Martin Company within the discount period. Jul. 19 Sold merchandise that cost $3,400 to Gonzalez Co. for $4,800 under credit terms point, invoice dated July 19. Jul. 21 Gave a price reduction (allowance) of $1,000 to Gonzalez Co. for merchandise so Gonzalez's accounts receivable for that amount. Jul. 24 Paid Mitchell Co. the balance due, net of discount. Jul. 30 Received the balance due from Gonzalez Co. for the invoice dated July 19, net of disc Jul. 31 Sold merchandise that cost $6,400 to Clark Co. for $10,600 under credit terms of 2/10 invoice dated July 31. ences

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_2

Step: 3

blur-text-image_3

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 Employee Hiring And Staffing

Authors: Kelli W. Vito

1st Edition

0894137034, 978-0894137037

More Books

Students also viewed these Accounting questions