Illustration of Merchandise Inventory Transactions for Seller and Buyer (1 of 2 )

Illustration of Merchandise Inventory Transactions for Seller and Buyer (1 of2) Tra n sac ti o n July - Scully Cornpany sold rnerchandise on account to Burton S 7.500. terrns FOB shippi ng point. n/45. The cost Of the goods sold vvas S4.500. July 2- Burton Co. paid freight Of S 150 on July purchase frorn Scully Cornpany. July 5- Scully Cornpany sold rnerchandise on aCCCunt tC: Burton S 5.000. terros FOB destination. n/ 15- The cost of the goods sold vvas $3,500. July 7- Scully Cornpany paid freight of S250 for delivery of rnerchandise sold to Burton Co. on July 5- July 5. Scully Cornpany received payr-nent frorn Burton Co. for purchase of July 5. July 18. Scully Company sold merchandise on account to Bur- ton Co.. Sl 2,000, terms FOB shipping point. 2/10. n,zeom. Scully Company prepaid freight of $500, which was added to the invoice. The cost of the goods sold was $7,200. July 22. Scully Company paid Burton co. a refund Of $750 for merchandise damaged in the July 5 purchase. Burton kept the merchandise. July 28. Scully Company received payment from Burton co. for purchase Of July 18. to a publicly oole