Answered: Exercise 4-12 (Static) Recording… | bartleby

Exercise 4-12 (Static) Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandising transactions of Dollar Store. November 1 Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. November 5 Dollar Store pays cash for the November 1 purchase. November 7 Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on I November 5, for a cash refund. November 10 Dollar Store pays $90 cash for transportation costs for the November 1 purchase. November 13 Dollar Store sells merchandise for $1,600 with terms n/30. The cost of the merchandise is $800. November 16 Merchandis) is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $160 and cost $80; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross method.

Survey of Accounting (Accounting I)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.2P: Sales-related transactions The- following selected transactions were completed by Affordable...

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Exercise 4-12 (Static) Recording purchases, sales, returns, and shipping LO P1, P2
Following are the merchandising transactions of Dollar Store.
November 1 Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB shipping point, invoice dated
November 1.
November 5
November 7
Dollar Store pays cash for the November 1 purchase.
Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on
November 5, for a cash refund.
November 10 Dollar Store pays $90 cash for transportation costs for the November 1 purchase.
November 13 Dollar Store sells merchandise for $1,600 with terms n/30. The cost of the merchandise is $800.
November 16 Merchandis) is returned to the Dollar Store from the November 13 transaction. The returned items are priced
at $160 and cost $80; the items were not damaged and were returned to inventory.
Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual inventory system and the gross
method.
View transaction list
Journal entry worksheet
3 4 5
Dollar Store purchases merchandise for $1,500 on terms of 2/5, n/30, FOB
shipping point, invoice dated November 1.
2
Note: Enter debits before credits.
Date
Nov 01
General Journal
6 7 8
Debit
Credit
U

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Purchases transactions Hoffman Company purchased merchandise on account from a supplier for 65,000, terms 1/10, n/30. Hoffman returned 7,500 of the merchandise and received full credit. A. If Hoffman Company pays the invoice within the discount period, what is the amount of cash required for the payment? B. What account is debited by Hoffman Company to record the rerurn?
Purchase-related transactions Journalize entries for the following related transactions of Lilly Heating Air Company: A. Purchased 36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice within the discount period. C. Discovered that 9,000 of the merchandise purchased in (A) was defective and returned items, receiving credit. D. Purchased 5,000 of merchandise from Schell Co. on account, terms n/30. E. Received a refund from Schell Co. for return in (C) less the purchase in (D).
Sales-related transactions using perpetual inventory system The following selected transactions were completed by Green Lawn Sup plies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers: July 1. Sold merchandise on account to Landscapes Co., 33,450, terms FOB shipping point, n/eom. The cost of the goods sold was 20,000. 2. Sold merchandise for 86,000 plus 8% sales tax to retail cash customers. The cost of the goods sold was 51,600. 5. Sold merchandise on account to Peacock Company, 17,500, terms FOB destination, 1/10, n/30. The cost of the goods sold was 10,000. 8. Sold merchandise for 112,000 plus 8% sales tax to retail customers who used VISA cards. The cost of the goods sold was 67,200. 13. Sold merchandise to customers who used MasterCard cards, 96,000. The cost of the goods sold was 57,600. 14. Sold merchandise on account to Loeb Co., 16,000, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was 9,000. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for 3,000 to Loeb Co. for merchandise returned from the sale on July 14, The cost of the merchandise returned was 1,800. 18. Sold merchandise on account to Jennings Company, 11,350, terms FOB shipping point, 2/10, n/30. Paid 475 for freight and added it to the invoice. The cost of the goods sold was 6,800. 24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. 28. Received check for amount due from Jennings Company for sale of July 18. 31. Paid Black Lab Delivery Service 8,550 for merchandise delivered during July to customers under shipping terms of FOB destination. 31. Received check for amount due from Landscapes Co. for sale of July 1. Aug. 3. Paid Hays Federal Bank 3,770 for service fees for handling MasterCard and VISA sales during July. 10. Paid 41,260 to state sales tax division for taxes owed on sales. Instructions Journalize the entries to record the transactions of Green Lawn Supplies Co.

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