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Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275 Exercise 68
Prepare journal entries to record the following merchandising transactions of Mason Company, which
applies the perpetual inventory system. ( Hint: It will help to identify each receivable and payable; for example, record the purchase on July 3 in Accounts Payable-OLB.)
July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3.
7 Sold merchandise to Brill Co. for $11,500 under credit terms of 2/10, n/60, FOB destination, invoice dated July 7. The merchandise had cost $7,750.
10 Purchased merchandise from Rupert Corporation for $14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. The invoice showed that at Mason's request, Rupert paid the $500 shipping charges and added that amount to the bill. ( Hint: Discounts are not applied to freight and shipping charges.)
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 Mason $1,450 and been sold for $1,850. The merchandise was restored to inventory.
14 After negotiations with Rupert Corporation concerning problems with the merchandise purchased on July 10, Mason received a credit memorandum from Rupert granting a price reduction of $2,000.
15 At OLB's request, Mason paid $150 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 Corporation for the July 10 purchase less the price reduction granted.
21 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point, invoice dated July 21. The merchandise had cost $7,000.
24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Mason sent Brown a credit memorandum for $1,300 to resolve the issue.
30 Received Brown's cash payment for the amount due from the July 21 sale.
31 Paid OLB Corp. the amount due from the July 3 purchase.
applies the perpetual inventory system. ( Hint: It will help to identify each receivable and payable; for example, record the purchase on July 3 in Accounts Payable-OLB.)
July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3.
7 Sold merchandise to Brill Co. for $11,500 under credit terms of 2/10, n/60, FOB destination, invoice dated July 7. The merchandise had cost $7,750.
10 Purchased merchandise from Rupert Corporation for $14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. The invoice showed that at Mason's request, Rupert paid the $500 shipping charges and added that amount to the bill. ( Hint: Discounts are not applied to freight and shipping charges.)
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 Mason $1,450 and been sold for $1,850. The merchandise was restored to inventory.
14 After negotiations with Rupert Corporation concerning problems with the merchandise purchased on July 10, Mason received a credit memorandum from Rupert granting a price reduction of $2,000.
15 At OLB's request, Mason paid $150 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 Corporation for the July 10 purchase less the price reduction granted.
21 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point, invoice dated July 21. The merchandise had cost $7,000.
24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Mason sent Brown a credit memorandum for $1,300 to resolve the issue.
30 Received Brown's cash payment for the amount due from the July 21 sale.
31 Paid OLB Corp. the amount due from the July 3 purchase.
Explanation
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Under Perpetual Inventory System, invent...
Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
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