Prepare journal entries to record the following merchandising transactions of Knight's, which uses the perpetual inventory system Hint: It will help to identify each receivable and payable for example, record the purchase on August 1 in Accounts Payable Wilson Aug. 1 Purchased merchandise from Wilson Company for $11,700 under credit terns of 1/10, n/30, POB destination, invoice dated August 1. Aug. 5 sold merchandise to Griffin Corp. for $7,300 under credit terms of 2/10, n/60, FOB destination, Invoice dated August 5. The merchandise had cost $4,400 Aug 8 Purchased merchandise from Hall Corporation for $6,240 under credit terms of 1/10, n/45, POB shipping point, invoice dated August 8. Aug 9 Paid $325 cash for shipping charges related to the August 5 sale to Griffin Corp. Aug. 10 Griffin returned merchandise from the August 5 sale that had cont Knight's $100 and was sold for $200. The merchandise was restored to inventory Aug. 12 After negotiations with Hall Corporation concerning problem with the purchases on August 8, Knight's received a price reduction from all of $900 oft the $6,240 of goods purchased. Knight's debited accounts payable for $900. Aug. 14 At Wilson request, Knight paid $300 canh for freight charges on the August I purchase, reducing the amount owed accounts payable) to Wilson. Aug. 15 Received balance due from ricin Corp. for the August 5 wala na the return on August 10. Aug. 18 Paid the amount due Hall Corporation for the August B purchase lean the price allowance from August 12. Aug. 19 Sold merchandise to Garcia co. for $4,200 under credit terms of n/10. POB shipping point, Invoice dated August 19. The merchandise had cost $2,100. Aug. 22 Garcia requested a price reduction on the August 19 sale because the merchandise did not neet specifications. Knight's gave a price reduction allowance) of $500 to dareia, and credited Garcia's accounts receivable for that amount Aug. 29 Received Garcia cash payment for the amount due from the August 1% Bale less the price allowance from August 22. Aug. 30 Paid Wilson Company the amount due from the August 1 purchase Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income General Journal tab. Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. Income Statement tab - Prepare the income statement through the calculation of gross profit Impact on Income tab - Indicate the impact each transaction had on net income. Fleu General Journal > View transaction list Journal entry worksheet 2221 Aug. 1) Purchased merchandise from Wilson Company for $11,700 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits. Date Account Title Debit Credit Aug 01 View general Journal Clear entry Record entry View transaction list Journal entry worksheet Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts rec payable will be updated based on your entries. (Round all amounts to the nearest dollar.) View transaction list Journal entry worksheet 02:57:05 View transaction list Journal entry worksheet 58 Aug. 9) Paid $325 cash for shipping charges related to the August 5 sale to Griffin Corp. Note: Enter debits before credits Date Account Title Debit Credit Aug 09 Record entry Clear entry View general journal View transaction list Journal entry worksheet View transaction list Journal entry worksheet View transaction list Journal entry worksheet View transaction list Journal entry worksheet 24 View transaction list Journal entry worksheet 19 View transaction list Journal entry worksheet :14 View transaction list Journal entry worksheet 10 1 View transaction list Journal entry worksheet 9 11 10 14 12 ..... 15 16 Aug. 19) The cost of the merchandise sold merchandise to Garcia was $2,100. Note: Enter debits before credits. Date Account Title Debit Credit Aug 19 Record entry Clear entry View general Journal View transaction list Journal entry worksheet 9 1 10 11 12 13 15 16 > ..... Aug. 22) Garcia requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Knight's's gave a price reduction (allowance) of $500 to Garcia, and credited Garcia's accounts receivable for that amount. Note: Enter debits before credits Date Account Title Debit Credit Aug 22 Record entry Clear entry View general journal View transaction 115 Journal entry worksheet 1 11 10 Aug. 29) Received Garcia's cash payment for the amount due from the August 19 sale less the price allowance from August 22. Note: Enter debits before credits. Date Account Title Credit Debit Aug 29 View general journal Clear entry Record entry View transaction list Journal entry worksheet 6
