... The following merchandising transactions for Menards Trading Company follows: July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms 1/10, n/30, FOB destination. 7 Sold merchandise to Brill Co. for $11,500 under credit terms 2/10, n/60, FOB destination. The merchandise had cost of $7,750. 10 Purchased merchandise from Rupert Co. for $14,200 under credit terms 1/10, n/45, FOB shipping point 11 Paid $300 cash for shipping charges related to the July 7 sale to Brill Co. 12 Brill returned merchandise from the July 7 sale that had cost Menards $1,450 and been sold for $2,000. The merchandise was restored to inventory. 14 After negotiations with Rupert Co. concerning problems with the merchandise purchased on July 10, Menards received a credit memorandum from Rupert granting a price reduction of $1,200. 15 At OLB's request, Menards paid $200 cash for freight charges on the July 3 purchase, reducing the amount owed to OLB. 17 Received balance due from Brill Co. for the July 7 sale less the return on July 12. 20 Paid the amount due Rupert Co. for the July 10 purchase less the price reduction granted on July 14. 21 Sold merchandise to Brown Co. for $11,000 under credit terms 1/10,n/30, FOB shipping point. The merchandise had cost of $7,000. ... 24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Menard sent Brown a credit memorandum for $1,000 toward the $11,000 invoice to resolve the issue. 30 Received Brown's cash payment for the amount due from the July 21 sale less the price allowance from July 24. 31 Paid OLB Corp. the amount due from the July 3 purchase. Based on the above transactions, fill in the blanks. 1. After all transactions have been posted, accounts receivable balance is Blank 1. 2. After all transactions have been posted, accounts payable balance is Blank 2. 3. After all transactions have been posted, cash balance is Blank 3. 4. After all transactions have been posted, sales balance is Blank 4. 5. After all transactions have been posted, sales discount balance is Blank 5. 6. After all transactions have been posted, merchandise inventory balance is Blank 6. 7. After all transactions have been posted, cost of goods sold balance is Blank 7. 8. After all transactions have been posted, sales returns and allowances balance is Blank 8. 9. After all transactions have been posted, total assets amount to Blank 9. 10. After all transactions have been posted, total transportation costs chargeable to operating expense of Menard is Blank 10. DATE ACCOUNT TITLE DEBIT CREDIT July 3 Merchandise inventory 15000 Accounts payable -OLB Coro 15000 7 Accounts receivable Brico 11500 sales revenue 11500 cost of goods sold 7750 Merchandise inventory 7750 10 Merchandise inventory 14200 Accounts payable -Rupert co. 14200 11 Freight outward 300 cash 300 12 Sales return and allowance 2000 Accounts receivable - Brill.co. 2000 Merchandise inventory 1450 Cost of goods sold 1450 14 Accounts payable -Rupert co 1200 Merchandise inventory 1200 15 Accounts payable -OLB Corp 200 cash 200 17 cash 9310 Sales discount (95009296) 190 Accounts receivable - Brico.[11500-2000) 9500 20 13000 Accounts payable -Rupert Co. (14200-1200) Merchandise inventory (130009196) 130 cash 12870 21 Accounts receivable -Brown co 11000 sales revenue 11000 cost of goods sold 7000 Merchandise inventory 7000 24 sales return and allowance 1000 Accounts receivable -Brown co 1000 30 cash 9900 sales discount [10000996) 100 Accounts receivable-Brown co [11000-1000] 10000 31 Accounts payable-OLB Corp (15000-2001 14800 cash 14800
