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Presented below are selected transactions for Novak Company during September and October of the current year. Sept. 1 Purchased merchandise on account from Hillary Company
Presented below are selected transactions for Novak Company during September and October of the current year. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $45,000, 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 $3,600 of damaged goods purchased from Hillary Company on September 1 15 Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $70,000, terms 2/ 10, ?/30, FOB destination. 16 The correct company paid $2,600 of freight charges on the September 15 sale of merchandise 17 Issued Irvine Company a credit of $5,000 for returned goods. These goods had cost Novak 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 fom Kimmel Company at a cost of $52,000, 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 $86,000, 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 $2,200 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 Record the September and October transactions for Novak Company, assuming a periodic inventory system is used instead of a prtual inventory system. (Credit account titles are automatically indented when the amount is cntered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal cntries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
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