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P5-1A. O'Quinn Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June,

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P5-1A. O'Quinn Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, O'Quinn's inventory consisted of suitcases costing $1,200. During the month of July, the following merchandising transactions occurred P5-2A. Pace Distributing Company completed the following merchandising transactions in the month of April. At the beginning of April, the ledger of Pace showed Cash of $9,000 and Owner'sCapital of $9,000 ase and sales P5-1A OQuinn Co distributes suitcases to retail stores and extends credit terms of 1/10, n/30 er a perpenual to a of its customers. At the end of June, O'Ouinn's inventory consisted of suitcases costing $1,200. During the month of July, the following merchandising transactions occurred July 1 Purchased suitcases on account for $1,800 from Emerson Manufacturers, FOB desti- nation, terms 2/10, n/30. The appropriate party also made a cash payment of S100 for freight on this date. Sold suitcases on account to Straume Satchels for $2.000. The cost of suitcases sold is $1.200. Paid Emerson Manufacturers in full. Received payment in full from Straume Satchels. 3 9 12 17 Sold suitcases on account to The Going Concern for $1,800. The cost of the suitcases sold was $1,080. Purchased suitcases on account for $1,900 from Hume Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of $125 for freight on this date 18 20 Received $300 credit (including freight) for suitcases returned to Hume Manufacturers 21 Received payment in full from The Going Concern. 22 Sold suitcases on account to Desmond's for $2.250. e cost of suitcases sold was $1.350. 30 Paid Hume Manufacturers in full. Granted Desmond's $200 credit for suitcases returned costing $120. O'Ouinn's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold Instructions Journalize the transactions for the month of July fo OOuinn using a perpetual inventory system. P5-2A Pace Distributing Company completed the following merchandising transactions in the and prepare a atemerr. month of April. At the beginning of April,the ledger of Pace showed Cash of $9,000 and Owner's Capital of $9,000. Apr. 2 Purchased merchandise on account from Monaghan Supply Co. $6,900, terms 1/10, n/30. Sold merchandise on account $6,500, FOB destination, terms 1/10, n/30. The cost of the merchandise sold was $3.900 4 5 Paid $240 freight on April 4 sale. 6 Received credit from Monaghan Supply Co. for merchandise returned S500. 11 Paid Monaghan Supply Co. in fu less discount. 13 Received collections in fu less discounts, from customers billed on April 4. 14 Purchased merchandise for cash $3,800 16 Received refund from supplier for returned goods on cash purchase of April 14, $500. 18 Purchased merchandise from Dominic Distributors $4500, FOB shipping point, terms 2/10, n/30. 20 Paid freight on April 18 purchase $100. 23 Sold merchandise for cash $7,400. The merchandise sold had a cost of $4,120 26 Purchased merchandise for cash $2,300. 27 Paid Dominic Distributors in ful, less discount. 29 Made refunds to cash customers for defective merchandise $90. The returned mer chandise had a fair value of $30. Sold merchandise on account $3.700, terms n/30. The cost of the merchandise sold was 2.800. 30

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