Note: I will check this homework on Sunday/Monday next week. Question no. 1 (Homework) E5.4: - Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory system Apr. Purchased merchandise from Layla Company under the following terms: $4,600 price, 2 invoice dated April 2, credit terms of 2/15, 1/60, and FOB shipping point 3 Paid $300 for shipping charges on the April 2 purchase. 4 Returned to Layla Company unacceptable merchandise that had an invoice price of $600. 17 Sent a check to Layla Company for the April 2 purchase, net of the discount and the returned merchandise 18 Purchased merchandise from El Awal Corp, under the following terms: $8,500 price, invoice dated April 18, credit terms of 2/10, 1/30, and FOB destination 21 After negotiations, received from El Awal a $1,100 allowance on the April 18 purchase. 28 Sent check to El Awal paying for the April 18 purchase, net of the discount and allowance. Question no. 2 (Homework) Q55.1: - Enter the letter for each term in the blank space beside the definition that it most closely matches A. Sales discount B. Credit period C. Discount period D. FOB destination E FOB shipping point F. Gross profit G Merchandise inventory H. Purchase discount Cash discount J. Trade discount 1.Goods a company owns and expects to sell to its customers. 2. Time period that can pass before a customer's payment is due. 3.Seller's description of a cash discount granted to buyers in return for carly payment 4. Reduction below list or catalog price that is negotiated in setting the price of goods. 5.Ownership of goods is transferred when the seller delivers goods to the carrier 6. Purchaser's description of a cash discount received from a supplier of goods. 7.Reduction in a receivable or payable if it is paid within the discount period. 8.Difference between net sales and the cost of goods sold. 9.Time period in which a cash discount is available. 10.Ownership of goods is transferred when delivered to the buyer's place of business, Question no. 3 (Homework) QS5.7: - Prepare journal entries to record each of the following sales transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Apr. 1 Sold merchandise for $3,000, granting the customer terms of 2/10, EOM; invoice dated April 1. The cost of the merchandise is $1,800, Apr. 4 The customer in the April 1 sale returned merchandise and received credit for $600. The merchandise, which had cost $360, is returned to inventory Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4
