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Presented below are selected transactions for Martinez Company during September and October of the current year. Martinez uses a perpetual inventory system. Sept. 1 Purchased
Presented below are selected transactions for Martinez Company during September and October of the current year. Martinez uses a perpetual inventory system.
Sept. 1 | Purchased merchandise on account from Hillary Company at a cost of $51,000, FOB destination, terms 1/15, n/30. | |
2 | The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. | |
5 | Returned for credit $3,000 of damaged goods purchased from Hillary Company on September 1. | |
15 | Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $94,400, terms 2/10, n/30, FOB destination. | |
16 | The correct company paid $2,800 of freight charges on the September 15 sale of merchandise. | |
17 | Issued Irvine Company a credit of $5,900 for returned goods. These goods had cost Martinez Company $3,000 and were returned to inventory. | |
25 | Received the balance owing from Irvine Company for the September 15 sale. | |
30 | Paid Hillary Company the balance owing for the September 1 purchase. | |
Oct. 1 | Purchased merchandise on account from Kimmel Company at a cost of $56,000, terms 2/10, n/30, FOB shipping point. | |
2 | The correct company paid freight costs of $1,100 on the October 1 purchase. | |
3 | Obtained a purchase allowance of $2,500 from Kimmel Company to compensate for some minor damage to goods purchased on October 1. | |
10 | Paid Kimmel Company the amount owing on the October 1 purchase. | |
11 | Sold all of the merchandise purchased from Kimmel Company to Kieso Company for $105,000, terms 2/10, n/30, FOB shipping point. | |
12 | The correct company paid $800 freight costs on the October 11 sale. | |
17 | Issued Kieso Company a sales allowance of $2,300 because some of the goods did not meet Kieso's exact specifications. | |
31 | Received a cheque from Kieso Company for the balance owing on the October 11 sale. |
Prepare journal entries to record the above transactions for Martinez Company.
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