P5-31A Journalizing purchase and sale transactions Journalize the following transactions that occurred in September 2015 for Aquamarines. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $5,000. Terms 1/15, n/EOM, FOB shipping point. 4 Paid freight bill of $80 on September 3 purchase. 4 Purchased merchandise inventory for cash of $1,700. 6 Returned $500 of inventory from September 3 purchase. 8 Sold merchandise inventory to Hermosa Company, $6,000, on account. Terms 2/15, n/35. Cost of goods, $2,640. 9 Purchased merchandise inventory on account from Thomas Wholesalers, $8,000. Terms 2/10, n/30, FOB destination. 10 Made payment to Shallin Wholesalers for goods purchased on September 3, less return and discount. 12 Received payment from Hermosa Company, less discount. 13 After negotiations, received a $200 allowance from Thomas Wholesalers. 15 Sold merchandise inventory to Jordan Company, $2,500, on account. Terms 1/10, n/EOM. Cost of goods, $1,050. 22 Made payment, less allowance, to Thomas Wholesalers for goods purchased on September 9. 23 Jordan Company returned $400 of the merchandise sold on September 15. Cost of goods, $160. 25 Sold merchandise inventory to Smithsons for $1,100 on account that cost $400. Terms of 2/10, n/30 were offered, FOB shipping point. As a courtesy to Smithsons, $75 of freight was added to the invoice for which cash was paid by Aquamarines. 26 After negotiations, granted a $100 allowance to Smithsons for merchandise purchased on September 25. 29 Received payment from Smithsons, less allowance and discount. 30 Received payment from Jordan Company, less return.

Date Sep. 3 Sep. 4 Sep. 4 Sep. 6 Sep. 8 Sep. 8 Sep. 9 Sep. 10 Sep. 12 Sep. 13 Sep. 15 Sep. 15 Sep. 22 Sep. 23 Sep. 23 Sep. 25 Sep. 25 Sep. 25 Sep. 26 Sep. 29 Sep. 30 Accounts and Explanation Debit Credit Available accounts for journal entries: Merchandise Inventory Accounts PayableShallin Wholesalers Merchandise Inventory Cash Merchandise Inventory Cash Accounts PayableShallin Wholesalers Merchandise Inventory Accounts ReceivableHermosa Company Sales Revenue Cost of Goods Sold Merchandise Inventory Merchandise Inventory Accounts PayableThomas Wholesalers Accounts PayableShallin Wholesalers Cash Merchandise Inventory Cash Sales Discounts Accounts ReceivableHermosa Company Accounts PayableThomas Wholesalers Merchandise Inventory Accounts ReceivableJordan Company Sales Revenue Cost of Goods Sold Merchandise Inventory Accounts PayableThomas Wholesalers Cash Sales Returns and Allowance Accounts ReceivableJordan Company Merchandise Inventory Cost of Goods Sold Accounts ReceivableSmithsons Sales Revenue Cost of Goods Sold Merchandise Inventory Accounts ReceivableSmithsons Cash Sales Returns and Allowance Accounts ReceivableSmithsons Cash Sales Discounts Accounts ReceivableSmithsons Cash Accounts ReceivableJordan Company