Answered step by step
Verified Expert Solution
Question
1 Approved Answer
pls help!!! PROBLEM SET B Problem 5-1B Preparing journal entries for merchandising activities P1 P2 Prepare journal entries to record the following merchandising transactions of
pls help!!!
PROBLEM SET B Problem 5-1B Preparing journal entries for merchandising activities P1 P2 Prepare journal entries to record the following merchandising transactions of IKEA, which uses the per. petual inventory system and gross method. May 2 Purchased merchandise from Havel Co. for $10,000 under credit terms of 1/15,n/30, FOB shipping point, invoice dated May 2. 4 Sold merchandise to Rath Co. for $11,000 under credit terms of 2/10,n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $5,600. 5 Paid $250 cash for freight charges on the purchase of May 2. 9 Sold merchandise that had cost $2,000 for $2,500 cash. 10 Purchased merchandise from Duke Co. for $3,650 under credit terms of 2/15,n/60, FOB destination, invoice dated May 10. 12 Returned $650 of merchandise purchased on May 10 from Duke Co. and debited its account payable for that amount. 14 Received the balance due from Rath Co. for the invoice dated May 4, net of the discount. 17 Paid the balance due to Havel Co. within the discount period. Check May 14, Dr. Cash, $10,780 20 Sold merchandise that cost $1,450 to Tamer Co. for $2,800 under credit terms of 2/15,n/60, May 17, Cr. Cash, $9,900 FOB shipping point, invoice dated May 20. 22 Gave a price reduction (allowance) of $300 to Tamer Co. for merchandise sold on May 20 and credited Tamer's accounts receivable for that amount. 25 Paid Duke Co. the balance due, net of the discount. 30 Received the balance due from Tamer Co. for the invoice dated May 20, net of discount and May 30, Dr. Cash, $2,450 allowance. 31 Sold merchandise that cost $3,600 to Rath Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31 . 20 Sold merchandise that cost $1,450 to Tamer Co. for $2,800 under credit terms of 2/15,n/60, May 17, Cr. Cash, $9,900 FOB shipping point, invoice dated May 20. 22 Gave a price reduction (allowance) of $300 to Tamer Co. for merchandise sold on May 20 and credited Tamer's accounts receivable for that amount. 25 Paid Duke Co. the balance due, net of the discount. 30 Received the balance due from Tamer Co. for the invoice dated May 20, net of discount and May 30, Dr. Cash, $2,450 allowance. 31 Sold merchandise that cost $3,600 to Rath Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31 . PROBLEM SET B Problem 5-1B Preparing journal entries for merchandising activities P1 P2 Prepare journal entries to record the following merchandising transactions of IKEA, which uses the per. petual inventory system and gross method. May 2 Purchased merchandise from Havel Co. for $10,000 under credit terms of 1/15,n/30, FOB shipping point, invoice dated May 2. 4 Sold merchandise to Rath Co. for $11,000 under credit terms of 2/10,n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $5,600. 5 Paid $250 cash for freight charges on the purchase of May 2. 9 Sold merchandise that had cost $2,000 for $2,500 cash. 10 Purchased merchandise from Duke Co. for $3,650 under credit terms of 2/15,n/60, FOB destination, invoice dated May 10. 12 Returned $650 of merchandise purchased on May 10 from Duke Co. and debited its account payable for that amount. 14 Received the balance due from Rath Co. for the invoice dated May 4, net of the discount. 17 Paid the balance due to Havel Co. within the discount period. Check May 14, Dr. Cash, $10,780Step 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