Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

vas Fundamental conting Prindi mbsdirect vita source.com Inventory and Receivables 24 Paid Leight Co the balance due, met of discount. Received the balance due from

image text in transcribed
vas Fundamental conting Prindi mbsdirect vita source.com Inventory and Receivables 24 Paid Leight Co the balance due, met of discount. Received the balance due from Art Co. for the invoice dated July 19, met of discount 31 Sold merchandise that cost $4,500 to Creek Co. for $7.000 under credit terms of 2/10, 1/60 FOB shipping point, invoice dated July 31. Check July 12, Dr. Cash, $882 July 16, Cr. Cash, $5,940 July 24, Cr. Cash $1,960 July 30, Dr. Cash, $1,078 Problem 5-2A Preparing journal entries for merchandising activities-perpetual system P1 P2 Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. His: It will help to identify cach receivable and payable; for example, record the purchase on August 1 in Accounts Payable - Aron. Aug. 1 Purchased merchandise from Aron Company for $7.500 under Credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, 1/60, FOB destination, invoice dated August 5. The merchandise had cost $4.000. 8 Purchased merchandise from Waters Corporation for $5.400 under credit terms of 1/10,n/45. FOB shipping point, invoice dated August 9 Paid $125 cash for shipping charges related to the August 5 sale to Band Corp 10 Baird returned merchandise from the August 5 sale that had cost Lowe's $400 and was sold for $600. The merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the purchases on August 8, Lowe's received a price reduction from Waters of 5000 off the $5,000 of goods pur chased. Lowe's debited accounts payable for 5.000 14 At Aron's request, Lowe's paid $200 cash for freight charges on the August I purchase, reduc ing the amount owed accounts payable) to Aron 15 Received balance due from Baird Corp. for the August 5 sale less the return on August 10 18 Paid the amount due Waters Corporation for the August purchase less the price allowance from August 12 19 Sold merchandise to Tux Co. for $1.00 under credit terms of n/10, FOB shipping point in voice dated August 19. The merchandise had cost $2,400 22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lowe's gave a price reduction (allowance) of $500 to Tux and credited Tux's accounts receivable for that amount 29 Received Tux's cash payment for the amount due from the August 19 sale less the price allow ance from August 22. 30 Paid Aron Company the amount de from the August I purchase Check Aug. 9, Dr. Delivery Expense, $125 Aug 18. Cr. Cash, $4,950 Aug. 29, Dr. Cash, S4,300 Problem 5-3A Computing merchandising amounts and formatting income statements C2 P4 Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses Sales Salaries Expense, Rent Expense-Selling Space Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. MacBook Air

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Investments Equities Futures And Options Volume 1

Authors: R. Venkata Subramani

1st Edition

047082431X, 978-0470824313

More Books

Students also viewed these Accounting questions

Question

Avoid evasiveness. Be direct with your answers when possible.

Answered: 1 week ago