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Prepare journal entries to record the following merchandising transactions of Sanchez'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 Sanchez'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 PayableLee.)
Jul. | 1 | Purchased merchandise from Lee Company for $9,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. | ||
Jul. | 2 | Sold merchandise to Brown Co. for $2,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,560. | ||
Jul. | 3 | Paid $805 cash for freight charges on the purchase of July 1. | ||
Jul. | 8 | Sold merchandise that had cost $3,100 for $5,100 cash. | ||
Jul. | 9 | Purchased merchandise from Carter Co. for $3,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. | ||
Jul. | 11 | Returned $800 of merchandise purchased on July 9 from Carter Co. and debited its account payable for that amount. | ||
Jul. | 12 | Received the balance due from Brown Co. for the invoice dated July 2, net of the discount. | ||
Jul. | 16 | Paid the balance due to Lee Company within the discount period. | ||
Jul. | 19 | Sold merchandise that cost $3,200 to Clark Co. for $4,600 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. | ||
Jul. | 21 | Gave a price reduction (allowance) of $900 to Clark Co. for merchandise sold on July 19 and credited Clarks accounts receivable for that amount. | ||
Jul. | 24 | Paid Carter Co. the balance due, net of discount. | ||
Jul. | 30 | Received the balance due from Clark Co. for the invoice dated July 19, net of discount. | ||
Jul. | 31 | Sold merchandise that cost $6,200 to Brown Co. for $10,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. |
1-general journal?
2-impact on income?
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