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The following transactions were completed by Montrose Company during January of the current year. Montrose Company uses a perpetual system. Month January Purchased merchandise on
The following transactions were completed by Montrose Company during January of the current year. Montrose Company uses a perpetual system. Month January Purchased merchandise on account from Floyd Co., $4,000, terms FOB shipping point, 2/10, n/30, with prepaid transportation costs of $120 added to the invoice. Purchased merchandise on account from Kramer Co., $8,500, terms FOB destination, 1/10, n/30. Sold merchandise on account to C. F. Howell Co. list price $4,000, trade discount 30%, terms 2/10, n/30. The cost of the merchandise sold was $1,125. Purchased office supplies for cash, $150. Returned merchandise purchased on May 5 from Kramer Co. $1,300. Paid Floyd Co. on account for purchase of May 3, less discount. Purchased merchandise for cash, $10,500. Paid Kramer Co. on account for purchase of May 5, less return of May 10 and discount. Received cash on account from sale of May 6 to C.F. Howell Co., less discount. Sold merchandise on nonbank credit cards and reported accounts to the card company, American Express, $2,450. The cost of the merchandise sold was $980. Sold merchandise on account to Comer Co., $3,480, terms 2/10, n/30. The cost of the merchandise sold was $1,400. Sold merchandise for cash, $4,350. The cost of the merchandise sold was $1,750. Received merchandise returned by Comer Co. from sale on May 22, $1,480. The cost of returned merchandise was $600. Received cash from card company for nonbank credit card sales of May 19, less $140 service fee
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