Question
OQuinn Co. distributes suitcases to retail stores and extends credit terms of 5/10, n/30 to all of its customers. At the end of June, OQuinns
OQuinn Co. distributes suitcases to retail stores and extends credit terms of 5/10, n/30 to all of its customers. At the end of June, OQuinns inventory consisted of suitcases costing $1,200. During the month of July, the following merchandising transactions occurred.
July 1: Purchased suitcases on account for $1,900 from Jeni Manufacturers, FOB shipping point, terms 2/10, n/30. The appropriate party also made cash payment of $100 for freight on this date.
July 3: Sold suitcases on account to Straume Satchels for $2,000. The cost of suitcases sold is $1,200.
July 9: Paid Jeni Manufacturers in full.
July 12: Received payment in full from Straume Satchels.
July 17: Sold suitcases on account to The Going Concern for $1,800. The cost of the suitcases sold was $1,080, FOB destination. The appropriate party also made cash payment of $500 for freight on this date.
July 18: Purchased suitcases on account for $1,900 from Hume Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made cash payment of $125 for freight on this date.
July 20: Received $300 credit (including freight) for suitcases returned to Hume Manufacturers.
July 21: Received payment in full from The Going Concern.
July 30: Paid Hume Manufacturers in full.
Requirements:
Journalize the transactions for the month of July for OQuinn using a perpetual inventory system.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started