34. Prepare journal entries to record the following merchandising transactions of Dean Company, which applies the perpetual inventory system. Dean Company offers all of its credit customers credit terms of 2/10, n/30. May 1 Purchased merchandise from Swift Company for $7,800 under credit terms of 1/10, n/30, FOB shipping point, invoice dated May 1. May 2 Purchased merchandise from Arrow Company for $10,600 under credit terms 2/05, n/20, FOB destination. May 3 Sold merchandise to Bee Company for $5,600, FOB shipping point, invoice dated May 4. The merchandise had cost $3,000. May 4 Paid $300 cash for the freight charges on the May 1 purchase of merchandise. May 5 Received an $800 credit memorandum from Swift Company for the return of part of the merchandise purchased on May 1. May 6 Paid Arrow Company the balance due within the discount period. May 8 Sold merchandise to Nat Company for $3,300, FOB shipping point, invoice dated May 8. The merchandise had a cost of $1,500. May 11 Paid Swift Company the balance due within the discount period. May13 Received the balance due from Bee Company within the discount period. May 14 Issued a credit $300 credit memorandum to Nat Company for an allowance on defective merchandise. May 17 Received the balance due from Nat Company within the discount period. Your answer
34. Prepare journal entries to record the following merchandising transactions of Dean Company, which applies the perpetual inventory system. Dean Company offers all of its credit customers credit terms of 2/10, n/30. May 1 Purchased merchandise from Swift Company for $7,800 under credit terms of 1/10, n/30, FOB shipping point, invoice dated May 1. May 2 Purchased merchandise from Arrow Company for $10,600 under credit terms 2/05, n/20, FOB destination. May 3 Sold merchandise to Bee Company for $5,600, FOB shipping point, invoice dated May 4. The merchandise had cost $3,000. May 4 Paid $300 cash for the freight charges on the May 1 purchase of merchandise. May 5 Received an $800 credit memorandum from Swift Company for the return of part of the merchandise purchased on May 1. May 6 Paid Arrow Company the balance due within the discount period. May 8 Sold merchandise to Nat Company for $3,300, FOB shipping point, invoice dated May 8. The merchandise had a cost of $1,500. May 11 Paid Swift Company the balance due within the discount period. May13 Received the balance due from Bee Company within the discount period. May 14 Issued a credit $300 credit memorandum to Nat Company for an allowance on defective merchandise. May 17 Received the balance due from Nat Company within the discount period. Your answer
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 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...
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Transcribed Image Text:34. Prepare journal entries to record the following merchandising transactions of
Dean Company, which applies the perpetual inventory system. Dean Company
offers all of its credit customers credit terms of 2/10, n/30.
May 1 Purchased merchandise from Swift Company for $7,800 under credit terms of 1/10, n/30, FOB
shipping point, invoice dated May 1.
May 2 Purchased merchandise from Arrow Company for $10,600 under credit terms 2/05, n/20, FOB
destination.
May 3 Sold merchandise to Bee Company for $5,600, FOB shipping point, invoice dated May 4. The
merchandise had cost $3,000.
May 4 Paid $300 cash for the freight charges on the May 1 purchase of merchandise.
May 5 Received an $800 credit memorandum from Swift Company for the return of part of the
merchandise purchased on May 1.
May 6 Paid Arow Company the balance due within the discount period.
May 8 Sold merchandise to Nat Company for $3,300, FOB shipping point, invoice dated May 8. The
merchandise had a cost of $1,500.
May 11 Paid Swift Company the balance due within the discount period.
May13 Received the balance due from Bee Company within the discount period.
May 14 Issued a credit $300 credit memorandum to Nat Company for an allowance on defective
merchandise.
May 17 Received the balance due from Nat Company within the discount period.
Your answer
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