1. The following transactions occurred during the month of November in the operation of Wonderful Buy, Inc, a retailer of electronic merchandise. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided. November 4 Purchased merchandise for $5,000 on account from International Fragrance Corporation, terms: 2/10, n/60. November 16 Sold merchandise to a customer on account for $6,500, terms 2/10, n/30. The merchandise had cost Wonderful Buy's $3,200. November 18 Sold merchandise to a customer for cash, $850. The merchandise had cost Wonderful Buy's $350. November 19 Customer returned $200 of the merchandise from the sale on November 18 and was given a refund. The merchandise had cost Wonder Buy's $95. November 26 Received full amount due from the customer for the sale of November 16. November 27 Paid shipping charges on merchandise purchased on November 4, $200 November 30 Recorded the shrinkage adjustment. The inventory on hand as determined by taking a physical inventory at the end of November is $3,300. 1 Name Date For question #1a, b, and c: Assets = Liabilities + Stockholders’ Equity Accounts Merchandise Accounts Retained Description of Receivable Retained Earnings transaction Date Cash Inventory Payable Earnings 11/4 11/16 11/18 11/19 11/26 11/27 11/30
1. The following transactions occurred during the month of November in the operation of Wonderful Buy, Inc, a retailer of electronic merchandise. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided. November 4 Purchased merchandise for $5,000 on account from International Fragrance Corporation, terms: 2/10, n/60. November 16 Sold merchandise to a customer on account for $6,500, terms 2/10, n/30. The merchandise had cost Wonderful Buy's $3,200. November 18 Sold merchandise to a customer for cash, $850. The merchandise had cost Wonderful Buy's $350. November 19 Customer returned $200 of the merchandise from the sale on November 18 and was given a refund. The merchandise had cost Wonder Buy's $95. November 26 Received full amount due from the customer for the sale of November 16. November 27 Paid shipping charges on merchandise purchased on November 4, $200 November 30 Recorded the shrinkage adjustment. The inventory on hand as determined by taking a physical inventory at the end of November is $3,300. 1 Name Date For question #1a, b, and c: Assets = Liabilities + Stockholders’ Equity Accounts Merchandise Accounts Retained Description of Receivable Retained Earnings transaction Date Cash Inventory Payable Earnings 11/4 11/16 11/18 11/19 11/26 11/27 11/30
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter9: Sales And Purchases
Section: Chapter Questions
Problem 4PA: The following transactions relate to Hawkins, Inc., an office store wholesaler, during June of this...
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Transcribed Image Text:The following transactions occurred during the month of November in the operation of
Wonderful Buy, Inc, a retailer of electronic merchandise. Record each transaction listed
below to show its impact on the accounting equation in the table provided on the next
page for that purpose. For any entry that impacts Retained Earnings, write a brief
description in the column provided.
November 4 Purchased merchandise for $5,000 on account from International
1.
Fragrance Corporation, terms: 2/10, n/60.
November 16 Sold merchandise to a customer on account for $6,500,
terms 2/10, n/30. The merchandise had cost Wonderful Buy's $3,200.
November 18 Sold merchandise to a customer for cash, $850. The merchandise had cost
Wonderful Buy's $350.
November 19 Customer returned $200 of the merchandise from the sale on
November 18 and was given a refund. The merchandise had cost
Wonder Buy's $95.
November 26 Received full amount due from the customer for the sale of
November 16.
November 27 Paid shipping charges on merchandise purchased on November 4,
$200
November 30 Recorded the shrinkage adjustment. The inventory on hand as determined
by taking a physical inventory at the end of November is $3,300.
1
Name
Date
For question #1a, b, and c:
Assets = Liabilities + Stockholders' Equity
Accounts
Merchandise
Accounts
Retained
Description of
Date
Cash
Receivable
Inventory
Payable
Earnings
Retained Earnings
transaction
11/4
11/16
11/18
11/19
11/26
11/27
11/30
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