Question
The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of The
The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of The Jewel Box. Use a separate account for each receivable and payable; for example, record the purchase on August 1 in Accounts PayableLuu Company. Aug. 1 Purchased necklaces from Luu Company for $4,600 under credit terms of 1/10, n/30, FOB destination. 4 At Luu Companys request, paid $410 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 Sold rings to Green Ruby for $4,160 under credit terms of 3/10, n/60, FOB destination. The merchandise had cost $2,770. 8 Purchased bracelets from Jane Co. for $5,800 under credit terms of 1/10, n/45, FOB shipping point. 9 Paid $385 shipping charges related to the August 5 sale to Green Ruby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $500 and been sold for $860. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit memo from Jane granting a price reduction of $400. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from WestCo on credit, $6,600, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,100 under credit terms of 1/10, n/30, FOB shipping point. The merchandise had cost $1,050. 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit memo for $300 to resolve the issue. 29 Received Chic Jewellerys payment of the amount due from the August 19 purchase. 30 Paid Luu Company the amount due from the August 1 purchase.
Prepare General Journal entries to record the above transactions.
View transaction list Journal entry worksheet 1 2 N 3 4 5 6 7 8 8 17 Record the purchased goods; terms 1/10, n/30, FOB destination. Note: Enter debits before credits. General Journal Debit Credit Date Aug 01 Record entry Clear entry View general journalStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started