Journalize the following transactions that occurred in September for Red Hawk, 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. Red Hawk estimates sales returns at the end of each month.
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Journalize the following transactions that occurred in September for Red Hawk, 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 Red Hawk estimates sales returns at the end of each month (Record debits first, then credits. Exclude explanations from journal entries. Check your spelling carefully and do not abbreviate. Assume the company records sales at More Info Sep 3 Sep. 4 Sep. 4 Sep. 6 Sep. 8 Sep. 9 Sep. 10 Purchased merchandise inventory on account from Sidecki Wholesalers $5,500 Terms 2/15 nEOM FOB shipping point Paid freight bill of $55 on September 3 purchase, Purchase merchandise inventory for cash of $1900 Returned $800 of inventory from September 3 purchase Sold merchandise inventory to Herman Company, 56,100, on account. Terms 2/15) n/35 Cost of goods $2,501 Purchased merchandise inventory on account from Tex Wholesalers, S11,000 Terms 3/10 n/30, FOB destination Made payment to Sidecki Wholesalers for goods purchased on September 3, less return and discount Received payment from Herman Company, less discount After negotiations, received a $400 allowance from Tex Wholesalers Sold merchandise inventory to Java Company $3,200, on account. Terms n/EOM Cost of goods $1,504 Made payment, less allowance to Tex Wholesalers for goods purchased on September 9. Sold merchandise inventory to Small for $1,800 on account that cost $756. Terms of 2/10, 1/30 was offered, FOB shipping point. As a courtesy to Small, $55 of freight was added to the invoice for which cash was paid by Red Hawk Received payment from Small, less discount Sep. 12 Sep. 13 Sep. 15 Sep. 22 Sep. 25 Sep. 29 Sop 3. Purchased merchandise inventory on account from Sidecki Wholesalers, 5,500 Terms 2/15, n/EOM, FOB shipping point Date Accounts Debit Credit Sep 3 Merchandise Inventory 5,500 Accounts Payable-Sidecki Wholesalers 5,500 Sep 4 Paid freight bill of $55 on September 3 purchase Date Debit Credit Sep 4 Accounts Merchandise Inventory Cash 55 55 V Sep 4 Purchase merchandise inventory for cash of $1,900 Date Accounts Debit Credit Sep 4 Merchandise Inventory 1.900 Cash 1,900 Sep 6 Returned $800 of inventory from September 3 purchase Date Debit Credit Sep 6 Accounts Accounts Payable-Sidecki Wholesalers Merchandise Inventory 800 800 Sep 8 Sold merchandise inventory to Herman Company, $8,100 on account. Terms 2/15, n/35 Cost of goods $2,501 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 Debit Credit Sep Accounts Accounts Receivable-Herman Company Sales Revenge 8,100 8.100 Now jumalize the expense related to the September 8 Cost of goods $2.501 Date Debit Sep Credit Accounts Cost of Goods Sold Merchandise inventory 2501 2501 Sep 9: Purchased merchandise inventory on account from Tex Wholesalers, $11,000 Terms 3/10,n/30, FOB destination Date Accounts Debit Credit Merchandise Inventory 11,000 Accounts Payable-Tex Wholesalers 11,000 Sep 9 Sep 10: Made payment to Sideck Wholesalers for goods purchased on September 3, less return and discount Date Accounts Credit Sep 10 Accounts Payable-Sidecki Wholesalers Cash Debit 4,606 4.606 Sep 12. Received payment from Herman Company, less discount Date Accounts Debit Credit Sep. 12 Cash Accounts Receivable-Herman Company 5,978 5,978 Sep 13. Aller negotiations, received a $400 allowance from Tex Wholesalers Date Debit Credit Sep 13 Accounts Accounts Payable-Tex Wholesalers Merchandise Inventory 400 400 Sep 15 Sold merchandise inventory to Java Company $3,200, on account. Terms nEOM Cost of goods, $1,504 Bogin by preparing the entry to jumalize 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 Credit Sep 15 Accounts Receivable Java Company Sales Reve Debit 3.200 3.200 Now ouma the expense related to the September 15 -Cost of goods, $1.504 Date Accounts Debit Seo 15 Cost of Goods Solid 1,504 Merchandise inventory Credit 1.504 4 Sep 22 Made payment, less allowance to Tex Wholesalers for goods purchased on September 9 Debit Credit Date Accounts Accounts Payable-Tex Wholesalers 10,600 Sep 22 Cash 10,600 Sep 25 Sold merchandise inventory to Small for $1,800 on account that cost $756 Terms of 2/10, n/30 was offered, FOB shipping point As a courtosy to Small $55 of freight was added to the invoice for which cash was paid by Red Hawk 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 Accounts Receivable-Small 1,800 Sales Rovenue 1,800 Now journalize the expense related to the September 25 sale--Cost of goods $756. Date Accounts Debit Credit Sep. 25 756 Cost of Goods Sold Merchandise Inventory 756 Sep 29 Received payment from Small, less discount Date Accounts Debit Credit Sep. 29 Sep 30. Received payment from Java Company Date Accounts Debit Credit Sep 30
