Question
See attached document for clarity*** Journal Entries for Merchandise Transactions?Perpetual System Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related
See attached document for clarity***
Journal Entries for Merchandise Transactions?Perpetual System
Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related to merchandise during the month of June:
June 1 Purchased on account merchandise for resale for $10,000; terms were 2/10, n/30. 3 Paid $550 cash for freight on the June 1 purchase. 7 Returned merchandise costing $600 (part of the $10,000 purchase). 10 Paid for merchandise purchased on June 1. 13 Sold merchandise on account costing $8,000 for $10,000; terms were 2/10, n/30. 16 Customer returned merchandise costing $750 that had been sold on account for $1,000 (part of the $10,000 sale). 22 Received payment from customer for merchandise sold on June 13.
Required
Prepare journal entries for each of the transactions for the Cushing Distributing Company.
GENERAL JOURNAL DateDescriptionDebitCredit June 1 Answer
$Answer
$Answer
Answer
Answer
Answer
Purchased merchandise with 2/10, n/30 terms.
3 Answer
Answer
Answer
Answer
Answer
Answer
Paid freight on June 1 purchase.
7 Answer
Answer
Answer
Answer
Answer
Answer
Returned merchandise from June 1 purchase.
10 Answer
Answer
Answer
Answer
Answer
Answer
Cash Answer
Answer
Paid for merchandise purchased on June 1 within the discount period.
13 Answer
Answer
Answer
Answer
Answer
Answer
To record revenue from sale of merchandise.
13 Answer
Answer
Answer
Answer
Answer
Answer
To record cost of merchandise sold and to reduce inventory.
16 Answer
Answer
Answer
Answer
Answer
Answer
To record sales return by customer.
16 Answer
Answer
Answer
Answer
Answer
Answer
To record cost of goods returned by customers.
22 Cash Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
To record receipt of cash from customer within the discount period.
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
2nd edition
134730372, 134730370, 978-0134730370
