Mailings Review View Tell me ==== ! AaBb CcD ABCODE Heading AaBb CcD Heading 2 AaBbCeDdE Headings Cuption Exercise 5.2 Information related to RCo. is presented below. Prepare the journal entries for RCo, a buyer. a. Apr 05, RCo bought mdse, on account, from JAX for $28,000, forms 2/10n30, FOB shipping pt. (Did this one for you-you're welcome). b. On Apr 06 paid freight costs of $700 on merchandise purchased from JAX. (FYI Freight-Out" means you sol and ship to your customer"...you buying or selling?) c. On Apr 08, returned $3,600 of merchandise to JAX Company d. On Apr 14, paid the amount due to JAX Company 28,000 Apr05 INVENTORY (a) ACCOUNTS PAYABLE 28,000 Apr06 (b) Apr08 (c) Apr14 (d) Exercise 5.5 The following transactions are for ACo. Prepare the journal entries for Ago, a seller. a. Dec 03. ACa sold $500,000 of oodsa to a customer, on account, terms 1/10, n/30. The cost of udse sold was $330,000. (2 entries read. one for 500k the other for 330k) five done one of the entries for you...do the other read entry... CoS and INV) b. Ded 08. ACo gave the customer a "Sales Allowance of $25,000 for vodse bought Dec 03. (FYI: no cash is exchanged when giving an allowance - it reduces the amt to be collected) c. Dec 13, Ao received from the customer, the amount owed. (Does this include a sales discount or a reduction to Inventory? You the buyer or seller?) 500,000 Dec 03 ACCOUNTS RECEIVABLE (a) SALES 500,000 Doc 08 (b) 24 AaBb CcD Aalbcde AaBb CcD AaBb Ccode Coption Heading 1 Heading 2 Heading 3 Prob 5-2B At the beginning of April, the lodger of Rose showed Cash of $9,000 and Common Stock of $9,000. Rose Company completed these transactions in April. Apr. 2 Purchased merchandise on account from Kwon Supply Co. $6,900, torms 1/10, 1/30 (Terms and discounts apply when paying...not when ordering), 4 Sold merchandise on account $6,500, FOB destination terms 1/10, 1/30 (The cost of the merchandise sold was $3,900.) Two entries are needed - one for the SALE at $6,500, the other entry for your cost and reduction of INV). 5 Paid $240 freight on April 4 sale. (See the "Chart of Accounts" below so that you use the correct account name.) 6 Received credit from Kwon Supply Co. for merchandise returned $500 (a retum is the opposite (in forms of debits and credit) of the purchase) 11 Pald Kwon Supply Co. in full, less discount (make sure you have the correct amount that you owe Kwon.) 13 Received collections in full, less discounts, from customers billed on April 4. (Remember you are the seller collecting $$ and granting any discount on the sale) Purchased merchandise for cash $3,800 16 Received refund from supplier for returned goods on cash purchase of April 14, $500. (a partial reversal or the purchase on the 14") Purchased merchandise from Davis Co. $4,500, FOB shipping point, torms 2/10,n/30 (The shipping cost - FOB Shipping Point as in "buyer pays - is the next transaction) 20 Paid freight on April 18 purchase $100. 23 Sold merchandise for cash $7.400. The merchandise sold had a cost of $4.120. (When you soll vodse, you need 2 entries) 26 Purchased merchandise for cash $2,300. 27 Paid Davis Distributors in full, less discount. (Remember that as the buyer any discount is basically a reduction to your INV cost), 29 Made refunds to cash customers for defective merchandise $90. (The returned merchandise had a fair value of $30.) (if you made 2 entries to soll it- you need 2 entries to refund - basically a partial reversal of the sale) 30 Sold vodsa, on account $3,700, terms n/30. The cost of the mdse sold was $2,800 The chart of accounts for this assignment includes: Cash, Accts Recbl, Inventory. Accts Pyhle, Common Stock, Sales Revenue, Sales Retum & Allow, Sales Discounts, Cost of Goods Sold, and Freight-Out. 18 Instructions (a) Journalize these transactions, Instructors note: discount is applied when payment is received