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On September 30,2020 , Bryson Jewellers purchased inventory of $55,000 on account from Ontario Gems Ltd., a jewellery importer. Terms were 2/15, n/45. On receiving
On September 30,2020 , Bryson Jewellers purchased inventory of $55,000 on account from Ontario Gems Ltd., a jewellery importer. Terms were 2/15, n/45. On receiving the goods, Bryson checked the order and found $6,700 worth of items that were not ordered but included in the invoice. Bryson retumed this amount of merchandise to Ontario on October 4 . On October 14, Bryson paid Ontario. Required 1. Journalize all necessary transactions for Bryson Jewellers, which uses the perpetual inventory system. Explanations are not required. 2. Journalize the transactions of Ontario Gems Ltd., which uses the perpetual inventory system. Ontario's gross margin is 40 percent, so cost of goods sold is 60 percent of sales. Explanations are not required. Requirement 1. Joumalize all necessary transactions for Bryson Jewellers, which uses the perpetual inventory system. Explanations are not required. Let's start by recording the September 30 receipt and invoice of inventory. (Record debits first, then credits. Exclude explanations from journal entries. Round amounts to the nearest whole dollar.) Now, record the return of unsuitable merchandise on October 4. Finally, record the payment on October 14. Requirement 2. Joumalize the transactions of Ontario Gems Ltd., which uses the perpetual inventory system. Ontario: gross margin is 40 percent, 50 cost of goods sold is 60 percent of sales. Explanations are not required. We will begin Ontario's journal entries for the sale. Next, journalize the cost of goods sold. On May 4th, Bryson Jewellers returned unsuitable merchandise. Prepare the journal entry for the retum. Do not update Co: of Goods Sold at this time. Now, we can update Cost of Goods Sold for the return. Finally, joumalize the receipt of cash from Bryson Jewellers
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