Question
Prepare journal entries to record the following merchandising transactions of Lowes, which uses the perpetual inventory system and the gross method. (Hint: It will help
Prepare journal entries to record the following merchandising transactions of Lowes, 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 August 1 in Accounts PayableAron.)
Aug. | 1 | Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. | ||
5 | Sold merchandise to Baird Corp. for $3,500 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $2,000. | |||
8 | Purchased merchandise from Waters Corporation for $4,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. | |||
9 | Paid $240 cash for shipping charges related to the August 5 sale to Baird Corp. | |||
10 | Baird returned merchandise from the August 5 sale that had cost Lowes $500 and was sold for $1,000. The merchandise was restored to inventory. | |||
12 | After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowes received a credit memorandum from Waters granting a price reduction of $400 off the $4,000 of goods purchased. | |||
14 | At Arons request, Lowes paid $240 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron. | |||
15 | Received balance due from Baird Corp. for the August 5 sale less the return on August 10. | |||
18 | Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12. | |||
19 | Sold merchandise to Tux Co. for $3,000 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $1,500. | |||
22 | Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowes sent Tux a $500 credit memorandum toward the $3,000 invoice to resolve the issue. | |||
29 | Received Tuxs cash payment for the amount due from the August 19 sale less the price allowance from August 22. | |||
30 | Paid Aron Company the amount due from the August 1 purchase. |
1- Purchased merchandise from Aron Company for $5,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1.
2- Sold merchandise to Baird Corp. for $3,500 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5.
3- Record cost of merchandise sold, $2,000.
4- Purchased merchandise from Waters Corporation for $4,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.
5- Paid $240 cash for shipping charges related to the August 5 sale to Baird Corp.
6- Baird returned merchandise from the August 5 sale that was sold for $1,000.
7- Record the merchandise, cost $500, that was restored to inventory.
8- After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowes received a credit memorandum from Waters granting a price reduction of $400 off the $4,000 of goods purchased.
9- At Arons request, Lowes paid $240 cash for freight charges on the August 1 purchase, reducing the amount owed to Aron.
10- Received balance due from Baird Corp. for the August 5 sale less the return on August 10.
11- Paid the amount due Waters Corporation for the August 8 purchase less the price allowance from August 12.
12- Sold merchandise to Tux Co. for $3,000 under credit terms of n/10, FOB shipping point, invoice dated August 19.
13- Record cost of merchandise sold, $1,500.
14- Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowes sent Tux a $500 credit memorandum toward the $3,000 invoice to resolve the issue.
15- Received Tuxs cash payment for the amount due from the August 19 sale less the price allowance from August 22.
16- Paid Aron Company the amount due from the August 1 purchase.
please make sure it's correct 16 parts because i got wrong answer in firist question and this second time ( make it clear please ) |
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