Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Julie's Toy Land completed the following merchandise transactions in the month of April and included the following partial list of accounts View the April 201X
Julie's Toy Land completed the following merchandise transactions in the month of April and included the following partial list of accounts View the April 201X transactions. Assignment View the partial listing of accounts. Journalize the transactions using a perpetual inventory system. (Record debits first, then credits. Exclude explanations from journal entries. Found to the nearest whole dollar as needed) April 2. Purchased merchandise on account from lonic Suppliers, $3,000, terms 2/10, n/30 Date Apr. 2 Account Titles Debit Credit April 4: Sold merchandise on account, $1,400; terms 2/10, n/30. The cost of the merchandise sold was $600. Begin by journalizing the sale. (Do not record the expense related to the sale. We will do that in the following step) Credit Apr. 2 Apr. 4 Apr. 4 Purchased merchandise on account from lonic Suppliers, $3,000; terms 2/10, n/30. Sold merchandise on account, $1,400; terms 2/10, n/30. The cost of the merchandise sold was $600. Received credit from lonic Suppliers for merchandise returned, $300. Received collection in full, less discounts, from April 4 sales. Purchased store equipment for cash, $340. Received a refund due to defective merchandise from supplier on cash purchase of $100. Purchased merchandise on account from Tram Corp., $3,800, F.O.B. shipping point (buyer pays freight); terms 2/10, n/30. Freight to be paid on April 21. Apr. 10 Apr. 11 Apr. 14 Paid lonic Suppliers in full, less discount. Apr. 15 Apr. 16 Purchased $1,400 of merchandise from Fred Distribution for cash. Apr. 17 Apr. 18 Apr. 21 Apr. 25 Apr. 26 Apr. 27 Sold merchandise for $3,200 cash; the cost of merchandise sold was $1,200. Paid freight on April 17 purchase, $115. Purchased merchandise on account from Brother Co., $1,700, F.O.B. destination (seller pays freight); terms 2/10, n/30. Paid Tram Corp. in full, less discount. Made refunds to cash customers for defective toys, $270. The cost of the defective toys was $90. Partial List of Accounts Cash 101; Accounts Receivable 112; Merchandise Inventory 120; Store Equipment 124; Accounts Payable 201; J. Quoral, Capital 301; Sales 401; Sales Discounts 412; Sales Returns and Allowances 414; Cost of Goods Sold 501. -X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started