Question
Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory system and gross method. May 2nd-Purchased merchandise from Havel
Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory system and gross method.
May 2nd-Purchased merchandise from Havel Co. for $10,000 under credit terms of 115, n30, FOB shipping point, invoice dated May 2.
4th-Sold merchandise to Rath Co. for $11,000 under credit terms of 210, n60, FOB shipping point, invoice dated May 4. The merchandise had cost $5,600.
5th-Paid $250 cash for freight charges on the purchase of May 2.
9th-Sold merchandise that had cost $2,000 for $2,500 cash.
10th-Purchased merchandise from Duke Co. for $3,650 under credit terms of 215, n60, FOB destination, invoice dated May 10.
12th-Returned $650 of merchandise purchased on May 10 from Duke Co. and debited its account payable for that amount.
14th-Received the balance due from Rath Co. for the invoice dated May 4, net of the discount.
17th-Paid the balance due to Havel Co. within the discount period.
20th-Sold merchandise that cost $1,450 to Tamer Co. for $2,800 under credit terms of 215, n60, FOB shipping point, invoice dated May 20.
22nd- #9;Gave a price reduction (allowance) of $300 to Tamer Co. for merchandise sold on May 20 and credited Tamers accounts receivable for that amount.
25th-Paid Duke Co. the balance due, net of the discount.
30th-Received the balance due from Tamer Co. for the invoice dated May 20, net of discount and allowance.
31st-Sold merchandise that cost $3,600 to Rath Co. for $7,200 under credit terms of 210, n60, FOB shipping point, invoice dated May 31.
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