Question
Prepare journal entries to record the following merchandising transactions of Parker's, which uses the perpetual inventory system and the gross method. (Hint: It will help
Prepare journal entries to record the following merchandising transactions of Parker's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts PayableAllen.)
Jul. | 1 | Purchased merchandise from Allen Company for $10,600 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. | ||
Jul. | 2 | Sold merchandise to Garcia Co. for $3,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,920. | ||
Jul. | 3 | Paid $1,045 cash for freight charges on the purchase of July 1. | ||
Jul. | 8 | Sold merchandise that had cost $3,800 for $6,300 cash. | ||
Jul. | 9 | Purchased merchandise from Clark Co. for $4,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. | ||
Jul. | 11 | Returned $900 of merchandise purchased on July 9 from Clark Co. and debited its account payable for that amount. | ||
Jul. | 12 | Received the balance due from Garcia Co. for the invoice dated July 2, net of the discount. | ||
Jul. | 16 | Paid the balance due to Allen Company within the discount period. | ||
Jul. | 19 | Sold merchandise that cost $4,100 to Perez Co. for $5,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. | ||
Jul. | 21 | Gave a price reduction (allowance) of $1,200 to Perez Co. for merchandise sold on July 19 and credited Perezs accounts receivable for that amount. | ||
Jul. | 24 | Paid Clark Co. the balance due, net of discount. | ||
Jul. | 30 | Received the balance due from Perez Co. for the invoice dated July 19, net of discount. | ||
Jul. | 31 | Sold merchandise that cost $7,000 to Garcia Co. for $11,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. |
For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement.
Please just put numbers do not adjust anything else . its all correct .
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