Journal Entries for Merchandise Transactions—Perpetual System Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related to merchandise during the month of June: June 1 Purchased on account merchandise for resale for $9,000; terms were 2/10, n/30. 3 Paid $450 cash for freight on the June 1 purchase. 7 Returned merchandise costing $600 (part of the $9,000 purchase). 10 Paid for merchandise purchased on June 1. 13 Sold merchandise on account costing $8,000 for $11,000; terms were 2/10, n/30. 16 Customer returned merchandise costing $750 that had been sold on account for $1,000 (part of the $11,000 sale). 22 Received payment from customer for merchandise sold on June 13. Required Prepare journal entries for each of the transactions for the Cushing Distributing Company. GENERAL JOURNAL Date Description Debit Credit June 1 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Purchased merchandise with 2/10, n/30 terms. 3 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Paid freight on June 1 purchase. 7 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Returned merchandise from June 1 purchase. 10 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cash Answer Answer Paid for merchandise purchased on June 1 within the discount period. 13 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record revenue from sale of merchandise. 13 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record cost of merchandise sold and to reduce inventory. 16 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record sales return by customer. 16 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record cost of goods returned by customers. 22 Cash Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record receipt of cash from customer within the discount period.
Journal Entries for Merchandise Transactions—Perpetual System Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related to merchandise during the month of June: June 1 Purchased on account merchandise for resale for $9,000; terms were 2/10, n/30. 3 Paid $450 cash for freight on the June 1 purchase. 7 Returned merchandise costing $600 (part of the $9,000 purchase). 10 Paid for merchandise purchased on June 1. 13 Sold merchandise on account costing $8,000 for $11,000; terms were 2/10, n/30. 16 Customer returned merchandise costing $750 that had been sold on account for $1,000 (part of the $11,000 sale). 22 Received payment from customer for merchandise sold on June 13. Required Prepare journal entries for each of the transactions for the Cushing Distributing Company. GENERAL JOURNAL Date Description Debit Credit June 1 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Purchased merchandise with 2/10, n/30 terms. 3 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Paid freight on June 1 purchase. 7 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Returned merchandise from June 1 purchase. 10 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer Cash Answer Answer Paid for merchandise purchased on June 1 within the discount period. 13 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record revenue from sale of merchandise. 13 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record cost of merchandise sold and to reduce inventory. 16 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record sales return by customer. 16 AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record cost of goods returned by customers. 22 Cash Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts Answer Answer To record receipt of cash from customer within the discount period.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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Question
Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related to merchandise during the month of June:
June | 1 | Purchased on account merchandise for resale for $9,000; terms were 2/10, n/30. |
3 | Paid $450 cash for freight on the June 1 purchase. | |
7 | Returned merchandise costing $600 (part of the $9,000 purchase). | |
10 | Paid for merchandise purchased on June 1. | |
13 | Sold merchandise on account costing $8,000 for $11,000; terms were 2/10, n/30. | |
16 | Customer returned merchandise costing $750 that had been sold on account for $1,000 (part of the $11,000 sale). | |
22 | Received payment from customer for merchandise sold on June 13. |
Required
Prepare journal entries for each of the transactions for the Cushing Distributing Company.
GENERAL JOURNAL | ||||
---|---|---|---|---|
Date | Description | Debit | Credit | |
June | 1 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
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||
Purchased merchandise with 2/10, n/30 terms. | ||||
3 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
||
Paid freight on June 1 purchase. | ||||
7 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
||
Returned merchandise from June 1 purchase. | ||||
10 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
||
Cash | Answer
|
Answer
|
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Paid for merchandise purchased on June 1 within the discount period. | ||||
13 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
||
To record revenue from sale of merchandise. | ||||
13 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
||
To record cost of merchandise sold and to reduce inventory. | ||||
16 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
||
To record sales return by customer. | ||||
16 | AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
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To record cost of goods returned by customers. | ||||
22 | Cash | Answer
|
Answer
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|
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
|
||
AnswerAccounts PayableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts
|
Answer
|
Answer
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To record receipt of cash from customer within the discount period. |
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