xercise 1: 1. In May 7 Ali Co. purchase goods FOB shipping point from Ahmed Co. for $5000 on account under credit terms 2/10, n/30, 2. in May 7, Ali Co. paid cash $150 as freight expenses FOB shipping point 3. May 12 Ali Co, returns goods purchased in May 7 to Ahmed Co. for $300 4. in May 15, Ali Co. paid the balance due within the discount period structions: Prepare Journal entries assuming periodic inventory system. Purchase transactions: 1 Purchases Sales transaction Example: 1- in May 16, Ali Co. sold goods 40 unit at selling price 100$ per unit to Sami Co. on account 2/10 n, 30. FOB destination 2- in May 16 Ali Co. paid cash 350$ freight out expenses 3. In May 17, Ali Co received 5 units returned goods from Sami Co {{(5 unit*100) of $500} }, so he issued credit memo- to Sami co. 4- On May 20 Ali received the balance due from Sami Co 1- sales - the amount of sales 40 unit *selling price 100$ - $4000. in May 16, Ali Co. sold goods S4000 to Sami Co, on account 2/10 n,30. General Journal Date Account Title & Explanation Ref. Debit May 16 Credit 2- Freight-out expense (FOB destination) Date Account Title & Explanation 16/5 Ref. Debit Credit 3- Sales Return and Allowances General Journal Account Title & Explanation Ref. Debit Credit Date May 17 4- Sales Discount and Cash collection Date May 20 General Joumal Account Title & Explanation Ref. Debit I Credit Exercise 2: On September 1, Snow Supply had an inventory of 15 backpacks at a cost of $25 cach. The company uses a perpetual inventory system. During September, the following transactions and events occurred. Assuming a periodic inventory system Sept. 4 Purchased 50 backpacks at $25 each from Jenks, terms 2/10, 1/30. Sept. 6 Received credit of $150 for the return of 6 backpacks purchased on Sept. 4 that were defective. Sept. 9 Sold 30 backpacks for $35 each to McGill Books, terms 2/10, n/30. Sept. 13 Sold 15 backpacks for $35 cach to Calvin Office Supply, terms n/30. Sept. 14 Paid Jenks in full, less discount. Instructions: Journalize the September transactions for Snow Supply. General Journal Date Account Title & Explanation Ref. Debit May 20 Credit Acco Exercise 3: 1. Prepare the necessary journal entries on the books of Tri-State Carpet Company to record the following transactions, assuming a periodic inventory system (you may omit explanations): a) Tri-State purchased $40,000 of merchandise on account, terms 2/10, 1/30. (b) Returned $4,000 of damaged merchandise for credit. (c) Paid for the merchandise purchased within 10 days. Exercise 4: Copple Hardware Store completed the following merchandise transactions in the month of May, Copple using periodic inventory system. May 1 Purchase 300 PCs on account $1200 each from Sameer Trading terms 2/10, n.30. 2 Received credit note $2400 for PCs purchased on May 1 3 Sold 25 PCs on account $1500 to Smart System, terms 1/10, 1/30. 7 Purchase office equipment on account $4500 from H. R. Co. 8 Received Collections in full from Smart System 9 Paid Sameer Trading the balance due. 10 Sold 15 PCs on account $1500 each to Net Soft Co. terms 1/10, 1/30. 13 Granted credit note to Net Soft Co. for 1 PC returned $1500. 18 Received collections in full from Net Soft. 25 Paid H.R. Co. in full. Instructions: Journalize the September transactions for Copple Hardware Store
