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Prepare journal entries to record the following merchandising transactions of Wilson'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 Wilson'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 Payable--Zhang.) Jul. 1 Purchased merchandise from thang Company for $7,400 under credit terms of 1/15, 1/30, POR shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Knight Co. for $1,600 under credit terms of 2/10, 1/60, POR shipping point, invoice date July 2. The merchandise had cost $960. Jul. 3 Pata $403 cash for freight charges on the purchase of July 1. Bold marchandise that had cout $1,900 for $3,100 cash Jul 9 Purchased merchandise from Taylor co. Por 02,900 de oredit terms of 2/0 780: To destination, invoies dated July 9 Jul 11 Returned $600 of merchandise purchased on July 9 tron Taylor Co. and debit able to that amount Jul. 12 Received the balance due from Knight Co. for the invoice dated July 2, of the discount Jul. 16 Paid the balance due to thang Company within the discount period Jul. 19 Sold merchandise that cost $1,000 to Weight Co. for $2,600 under credit care of 2/15, 1/60. Po shipping out invoice dated July 19. Jul. 21 Gave a price reduction allowance) of $500 to Wright co. for merchandise sold on July 1 and credited right accounts receivable for that amount. Jul. 24 Paid Taylor Co. the balance due, net of discount. Jul. 30 Received the balance due from Wright Co. for the invoice dated July 19, bet ot discount Jul. 31 Sold merchandise that cost $5,000 to Knight Co. for $8,400 under credit came of 2/10, 1/6, TOR shippt point. invoice dated July 31
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