Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nov. 4 Nov. 6 Nov. 8 Nov. 10 Nov. 11 Nov. 12 Nov. 13 Purchased merchandise inventory on account from Valera Company, $8,500. Terms 3/10,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Nov. 4 Nov. 6 Nov. 8 Nov. 10 Nov. 11 Nov. 12 Nov. 13 Purchased merchandise inventory on account from Valera Company, $8,500. Terms 3/10, n/EOM, FOB shipping point. Paid freight bill of $190 on November 4 purchase. Returned half of the inventory purchased on November 4 from Valera Company. Sold merchandise inventory for cash, $2,000. Cost of goods, $800. FOB destination. Sold merchandise inventory to Garfunkel Corporation, $10,500, on account, terms 3/10, n/EOM. Cost of goods, $5,775. FOB shipping point Paid freight bill of $35 on November 10 sale. Sold merchandise inventory to Callahan Company, $8,800 on account, terms of n/45. Cost of goods, $4,840. FOB shipping point Paid the amount owed on account from November 4, less return and discount. Received defective inventory as a sales return from the November 13 sale, $300. Cost of goods, $165 Purchased inventory of $4,000 on account from Roberts Corporation. Payment terms were 1/10, n/30, FOB destination. Received cash from Garfunkel Corporation, less discount. Paid amount owed on account from November 18, less discount. Received cash from Callahan Company, less return. Purchased inventory from Shanley Corporation for cash, $11,800, FOB shipping 14 Nov. 14 Nov. 17 lis Nov. 18 Nov. 20 Nov. 26 Nov. 28 e AD Question Help Joumalize the following transactions that occurred in November 2018 for Sarah's Special Place, assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Sarah's Special Place 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) Click the icon to view the transactions.) Nov. 4: Purchased merchandise inventory on account from Valera Company, $8,500. Terms 3/10, VEOM, FOB shipping point. Date Accounts Debit Credit Nov 4 Merchandise Inventory 8500 8500 Nov. 6. Paid freight bill of $190 on November 4 purchase, Date Debit Credit Nov. 6 Accounts Merchandise Inventory Cash 190 190 Nov. 8: Returned half of the inventory purchased on November 4 from Valera Company Nov. 8. Returned half of the inventory purchased on November 4 from Valera Company Date Accounts Debit Nov. 8 Merchandise Inventory 4250 Cash Credit 4250 Nov. 10Sold merchandise inventory for cash, $2,000. Cost of goods, $800. FOB destination 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. Accounts Dato Debit Credit Nov. 10 Naime the wens maar in the November 1nnnn Now joumalize the expense related to the November 10 sale-Cost of goods, $800. Dato Accounts Debit Nov. 10 Credit Nov. 11: Sold merchandise inventory to Garfunkel Corporation, $10,500, on account. Terms 3/10, NEOM. Cost of goods, $5,775. FOB shipping point. 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 Credit Accounts Debit Nov. 11 Now are the Now journalize the expense related to the November 11 sale-Cost of goods, $5,775. Date Accounts Debit Nov. 11 Credit Nov. 12: Paid freight bill of $35 on November 10 sale. Date Accounts Debit Credit Nov. 12 Nov. 13: Sold merchandise inventory to Callahan Company for $8,800 on account, terms of n/45. Cost of goods, $4,840. FOB shipping point Chance from anlit Nov. 13: Sold merchandise inventory to Callahan Company for $8,800 on account, terms of n/45. Cost of goods, 54,840. FOB shipping point 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 Nov. 13 Now joumalize the expense related to the November 13 sale-Cost of goods, $4,840 Date Accounts Debit Credit Nov. 13 Now 14. Pair Nov. 14: Paid the amount owed on account from November 4, less return and discount Date Accounts Debit Credit Nov. 14 Nov. 17: Received defective inventory as a sales return from the November 13 sale, $300. Cost of goods, $165. Start by preparing the entry to record the sales retum and decrease the receivable. Do not update the Merchandise Inventory with this entry. We will do that in the following step Date Accounts Debit Credit Nov. 17 Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise-Cost of goods returned, $165. Date Accounts Debit Credit Nov. 17 Nov. 18: Purchased inventory of $4,000 on account from Roberts Corporation. Payment terms were 1/10, 1/30, FOB destination Date Accounts Credit Debit Nov. 18 Nov. 20: Received cash from Garfunkel Corporation, less discount. Date Accounts Debit Credit Nov. 20 Nov. 26: Paid amount owed on account from November 18, less discount Date Accounts Debit Credit Nov. 26 Nov. 28: Received cash from Callahan Company, less return Date Accounts Debit Credit Nov. 28 Nov. 29: Purchased inventory from Shanley Corporation for cash, $11,800, FOB shipping point. Freight in paid to shipping company, $240. Start by preparing the entry to record the purchase of inventory. Do not record the freight. We will do that in the following step. Debit Credit Date Accounts Nov. 29 Now record the freight paid to shipping company, $240. Date Accounts Debit Credit Nov. 29

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CIA Essentials Of Internal Auditing Part 1 Exam Review 2023

Authors: S. Rao Vallabhaneni

1st Edition

1119987148, 978-1119987147

More Books

Students also viewed these Accounting questions