Question
Prepare journal entries to record the following merchandising transactions of Chang Company, which applies the perpetual inventory system. (Use a separate account for each receivable
Prepare journal entries to record the following merchandising transactions of Chang Company, which applies the perpetual inventory system. (Use a separate account for each receivable and payable; for example, record the purchase on May 2 in Accounts Payable - Smith Company).
May | 2 | Purchased merchandise from Smith Company for $20,000 under terms of 1/10, n/30, and FOB Shipping Point. |
| 4 | Sold merchandise to Xavier Company for $15,000 under credit terms of 2/15, n/45, FOB Shipping Point. The merchandise cost was $7,650. |
| 5 | Paid $275 freight charges on the purchase of May 2 from Smith Company |
| 9 | Sold merchandise that had cost $4,000 for $5,000 cash. |
| 10 | Purchased merchandise from Topeka Company for $6,450 under credit terms of 1/15, n/30, FOB destination. |
| 12 | Received a $650 credit memorandum from Topeka Company for the return of some of the merchandise purchased on May 10. |
| 12 | Paid the balance due to Smith Company - paid within the discount period. |
| 19 | Received the balance due from Xavier Company for the credit sale dated May 4, net of cash discount. |
| 20 | Sold merchandise that cost $1,700 to Wickersham Company for $2,950 under credit terms of 1/10, n/30 |
| 22 | Issued a $600 credit memorandum to Wickersham Company for the return of merchandise from the May 20 sale. |
| 25 | Paid Topeka company the balance due after deducting the discount. |
| 30 | Received the balance due from Wickersham Company for the sale of May 20 less merchandise returned and discount allowed. |
| 31 | Sold merchandise that cost $4,600 to Xavier Company for $7,350 under credit terms of 2/15, n/45 |
Step 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