- More info Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $5,000. Terms 3/15, n/EOM, FOB shipping point. Sep. 4 Paid freight bill of $70 on September 3 purchase. Sep. 4 Purchase merchandise inventory for cash of $2,400. Sep. 6 Returned $1,200 of inventory from September 3 purchase. Sep. 8 Sold merchandise inventory to Hilton Company, $6,200, on account. Terms 3/15, n/35. Cost of goods, $2,852. Sep. 9 Purchased merchandise inventory on account from Taylor Wholesalers, $7,000. Terms 2/10, n/30, FOB destination. Sep. 10 Made payment to Shallin Wholesalers for goods purchased on September 3, less return and discount. Sep. 12 Received payment from Hilton Company, less discount. Sep. 13 After negotiations, received a $250 allowance from Taylor Wholesalers. Sep. 15 Sold merchandise inventory to Julian Company, $3,300, on account. Terms n/EOM. Cost of goods, $1,485. Sep. 22 Made payment, less allowance, to Taylor Wholesalers for goods purchased on September 9. Sep. 25 Sold merchandise inventory to Shelton for $1,500 on account that cost $660. Terms of 3/10, n/30 was offered, FOB shipping point. As a courtesy to Shelton, $75 of freight was added to the invoice for which cash was paid by Water Works. an Print Done Journalize the following transactions that occurred in September for Water Works, assuming the perpetua inventory system is being used. No explanations are needed. Identify each accounts payable and accoun receivable with the vendor or customer name. Water Works estimates sales returns at the end of each month. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales at the net amount.) i (Click the icon to view the transactions.) Sep. 3: Purchased merchandise inventory on account from Shallin Wholesalers, $5,000. Terms 3/15, n/EOM, FOB shipping point. Date Accounts Debit Credit Sep. 3 Merchandise Inventory 5,000 Accounts PayableShallin Wholesalers 5,000 Sep. 4: Paid freight bill of $70 on September 3 purchase. Date Accounts Debit Credit Sep. 4 Merchandise Inventory 70 Cash 70 Sep. 4: Purchase merchandise inventory for cash of $2,400. Date Accounts Debit Credit Sep. 4 Merchandise Inventory 2,400 Cash 2,400 Sep. 6: Returned $1,200 of inventory from September 3 purchase. Date Accounts Debit Credit Sep. 6 1,200 Accounts PayableShallin Wholesalers Merchandise Inventory 1,200 Sep. 8: Sold merchandise inventory to Hilton Company, $6,200, on account. Terms 3/15, n/35. Cost of goods, $2,852. 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 Accounts Debit Credit Sep. 8 Accounts ReceivableHilton Company 6,014 Sales Revenue 6,014 Now journalize the expense related to the September 8 sale Cost of goods, $2,852. Date Accounts Debit Credit Sep. 8 Cost of Goods Sold 2,852 Merchandise Inventory 2,852
