Journalize the following transactions that occurred in September 2018 for Faucet, assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Faucet estimates sales returns at the end of each month. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount.) Sep. 3: Purchased merchandise inventory on account from Shield Wholesalers, $7,000. Terms 3/15, n/EOM, FOB shipping point. Date Accounts Debit Credit Sep. 3 Sep. 4: Paid freight bill of $70 on September 3 purchase. Date Accounts Debit Credit Sep. 4 Sep. 4: Purchase merchandise inventory for cash of $2,100. Date Accounts Debit Credit Sep. 4 Sep. 6: Returned $900 of inventory from September 3 purchase. Date Accounts Debit Credit Sep. 6 Sep. 8: Sold merchandise inventory to Herenda Company, $6,000, on account. Terms 1/15, n/35. Cost of goods, $2,820. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Sep. 8 Now journalize the expense related to the September 8 sale-Cost of goods, $2,820. Accounts Debit Credit Date Sep. 8 Sep. 9: Purchased merchandise inventory on account from Tex Wholesalers, $7,500. Terms 2/10, n/30, FOB destination. Date Accounts Debit Credit Sep. 9 Sep. 10: Made payment to Shield Wholesalers for goods purchased on September 3, less return and discount. Date Accounts Debit Credit Sep. 10 Sep. 12: Received payment from Herenda Company, less discount. Date Accounts Debit Credit Sep. 12 Sep. 13: After negotiations, received a $400 allowance from Tex Wholesalers. Date Accounts Debit Credit Sep. 13 Sep. 15: Sold merchandise inventory to Jeeves Company, $2,900, on account. Terms n/EOM. Cost of goods, $1,363. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Sep. 15 Now journalize the expense related to the September 15 sale-Cost of goods, $1,363. Date Accounts Debit Credit Sep. 15 Sep. 22: Made payment, less allowance, to Tex Wholesalers for goods purchased on September 9. Date Accounts Debit Credit Sep. 22 Sep. 23: Jeeves Company returned $700 of the merchandise sold on September 15. Cost of goods, $329. Start by preparing the entry to record the refund and decrease to the receivable. Do not update the Merchandise Inventory with this entry. We will do that in the following step. Date Accounts Debit Credit Sep. 23 Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise-Cost of goods returned, $329. Date Accounts Debit Credit Sep. 23 Sep. 25: Sold merchandise inventory to Smithsons for $1,900 on account that cost $836. Terms of 2/10, n/30 was offered, FOB shipping point. As a courtesy to Smithsons, $90 of freight was added to the invoice for which cash was paid by Faucet. Begin by preparing a compound journal entry to journalize the sale and the full amount of the receivable from this transaction. Do not record the expense related to the sale. We will do that in the following step. (Prepare a compound journal entry.) Date Accounts Debit Credit Sep. 25 Now journalize the expense related to the September 25 sale-Cost of goods, $836. Date Accounts Debit Sep. 25 Credit Sep. 29: Received payment from Smithsons, less discount. Date Accounts Debit Credit Sep. 29 Sep. 30: Received payment from Jeeves Company, less return. Date Accounts Debit Credit Sep. 30
