Jul 4 Highland Furnishings purchased $12,000 of merchandise from K and B Furniture Warehouse on account. Terms, 4/15, n/30, FOB shipping point. The goods cost K and B Furniture Warehouse $2,600. 7 Highland Furnishings paid a $50 freight bill for delivery of the goods purchased on July 4. 10 Highland Furnishings returned $2,000 of the merchandise purchased on July 4. The goods cost K and B Furniture Warehouse $800. 18 Highland Furnishings paid $1,200 of the July 4 invoice less the discount. 31 Highland Furnishings paid the remaining amount owed on the July 4 invoice. The following transactions occurred between Highland Furnishings and K and B Furniture Warehouse during July of the current year: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize these transactions on the books of Highland Furnishings, assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Jul 4: Highland Furnishings purchased $12,000 of merchandise from K and B Furniture Warehouse on account. Terms, 4/15, n/30, FOB shipping point. The goods cost K and B Furniture Warehouse $2,600 Journal Entry Date Accounts Debit Credit Jul 7: Highland Furnishings paid a $50 freight bill for delivery of the goods purchased on July 4. Journal Entry Date Accounts Debit Credit Jul Jul 10: Highland Fumishings returned $2,000 of the merchandise purchased on July 4. The goods cost K and B Furniture Warehouse $800. Journal Entry Date Accounts Debit Credit Jul 101 Jul 18: Highland Fumishings paid $1,200 of the July 4 invoice less the discount. Jul 18: Highland Furnishings paid $1,200 of the July 4 invoice less the discount. Journal Entry Date Accounts Debit Credit Jul 18 Jul 31: Highland Furnishings paid the remaining amount owed on the July 4 invoice. Journal Entry Date Accounts Debit Credit Jul 31 Requirement 2. Journalize these transactions on the books of Kand B Furniture Warehouse, assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any joumal entries.) Jul 4: Highland Furnishings purchased $12,000 of merchandise from K and B Furniture Warehouse on account. Termis, 4'15, 1/30. FOB shipping point. The goods cost and Furniture Warehouse $2,600. Begin by joumalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. We will do this in the next journal entry) Journal Entry Accounts Date Debit Credit 4 Now journalize the cost of goods sold related to the sale of merchandise on July 4. Journal Entry Accounts Date Debit Credit Jul 10: Highland Fumishings retumed $2,000 of the merchandise purchased on July 4. The goods cost K and B Furniture Warehouse $800. Start tyreccirting the receivable portion of the merchandise retum. (Da not yet record the inventory adjustment related to the return. We will do this in the next journal entry? Journal Entry Date Accounts Debit Credit Jul 10 Journal Entry Date Accounts Debit Credit Jul 10 Now journalize the inventory portion of the merchandise return. Journal Entry Date Accounts Debit Credit Jul 10 Jul 18: Highland Furnishings paid $1,200 of the July 4 invoice less the discount. Journal Entry Date Accounts Debit Credit Jul 18 Jul 31: Highland Furnishings paid the remaining amount owed on the July 4 invoice. Journal Entry Date Accounts Debit Credit Jul 31
