More Info Jul 4 Thompson Furnishings purchased $10,000 of merchandise from L and W Furniture Warehouse on account. Terms, 2/15, n/30, FOB shipping point. The goods cost L and W Furniture Warehouse $2,900. 7 Thompson Furnishings paid a $150 freight bill for delivery of the goods purchased on July 4. 10 Thompson Furnishings returned $2,000 of the merchandise purchased on July 4. The goods cost L and W Furniture Warehouse $600. 18 Thompson Furnishings paid $1,800 of the July 4 invoice less the discount. 31 Thompson Furnishings paid the remaining amount owed on the July 4 invoice. Print Done Requirement 1. Journalize these transactions on the books of Thompson Furnishings, assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Jul 4: Thompson Furnishings purchased $10,000 of merchandise from L and W Furniture Warehouse on account. Terms, 2/15, 1/30, FOB shipping point. The goods cost L and W Furniture Warehouse $2,900. Journal Entry Date Accounts Debit Credit Jul Jul 7: Thompson Furnishings paid a $150 freight bill for delivery of the goods purchased on July 4. Journal Entry Date Accounts Debit Credit Jul Jul 10: Thompson Furnishings returned $2,000 of the merchandise purchased on July 4. The goods cost L and W Furniture Warehouse $600. Journal Entry Date Accounts Debit Credit Jul 101 Jul 18: Thompson Furnishings paid $1,800 of the July 4 invoice less the discount. Journal Entry Date Accounts Debit Credit Jul 18 Jul 31: Thompson 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 L and W Furniture Warehouse, assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Jul 4: Thompson Furnishings purchased $10,000 of merchandise from L and W Furniture Warehouse on account. Terms, 2/15, n/30. FOB shipping point. The goods cost L and W Furniture Warehouse $2,900. Begin by journalizing 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 Date Accounts Debit Credit Jul Now journalize the cost of goods sold related to the sale of merchandise on July 4. Journal Entry Date Accounts Debit Credit Jul Jul 10: Thompson Furnishings returned $2,000 of the merchandise purchased on July 4. The goods cost L and W Furniture Warehouse $600. Start by recording the receivable portion of the merchandise return. (Do 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 101 Now journalize the inventory portion of the merchandise return. Journal Entry Accounts Date Debit Credit Jul 10 Jul 18: Thompson Furnishings paid $1,800 of the July 4 invoice less the discount. Journal Entry Date Accounts Debit Credit Jul 18 Jul 31: Thompson Furnishings paid the remaining amount owed on the July 4 invoice. Journal Entry Date Accounts Debit Credit Jul 31
