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the Co. bat due after deducting the discount on goods sold on July 9 30 ance alowance 31 Received the balance due from Art Co.
the Co. bat due after deducting the discount on goods sold on July 9 30 ance alowance 31 Received the balance due from Art Co. July 19. of discount that FOB shipping point, invoice to Creek Co. for S7.000 credit terms 2/10. dated July 31. Prepare journal entries to record the following transactions of She Company, which Problem journ 4-2A Preparing applies the perpetual inventory merchandising receivable and payable; for example, system. (Hint: It elp to identify each record the purchase on August 1 in Accounts merchandising Payable-Arotek.) Aug. 1 Purchased merchandise from soo 1/10, n/30. perpetual syst destination, invoice Arotek Company for $7 under credit terms of P1 P2 5 Sold dated August 1 under credit terms of 2/10. n/60, FOB destination, merchandise t Laird Corp. for $5.200 invoice dated August 5. The merchandise had cost $4,000. & Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45. FOB shipping point, invoice dated August 8. The invoice showed that at Sheng's request, Waters paid the $140 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.) Paid S125 cash for shipping charges related to the August 5 sale to Laird Corp. 10 Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for Check $600. The merchandise was restored to inventory. Expens 12 After negotiations with waters Corporation concerning problems with the merchandise p chased on August 8, Sheng received a credit memorandum from Waters granting a price 14 reduction of $700. freight charges on the August purchase, reduc- At Arotek's request, Sheng paid $200 cash for ing the amount owed to Arotek
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