Prepare journal entries to record the following merchandising transacti the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Griffin.) July 1 Purchased merchandise from Griffin Company for $10,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Wilson Company for $3,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,860. July 3 Paid $1,005 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $3,700 for $6,100 cash. July 9 Purchased merchandise from Lee Company for $4,400 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $900 of merchandise purchased on July 9 from Lee Company and debited its account payable for that amount. July 12 Received the balance due from Wilson Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Griffin Company within the discount period. July 19 Sold merchandise that cost $3,900 to Garcia Company for $5,600 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,100 to Garcia Company for merchandise sold on July 19 and credited Garcia's accounts receivable for that amount. July 24 Paid Lee Company the balance due, net of discount. July 30 Received the balance due from Garcia Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,800 to Wilson Company for $11,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Prepare journal entries to record the following merchandising transacti the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Griffin.) July 1 Purchased merchandise from Griffin Company for $10,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Wilson Company for $3,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,860. July 3 Paid $1,005 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $3,700 for $6,100 cash. July 9 Purchased merchandise from Lee Company for $4,400 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $900 of merchandise purchased on July 9 from Lee Company and debited its account payable for that amount. July 12 Received the balance due from Wilson Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Griffin Company within the discount period. July 19 Sold merchandise that cost $3,900 to Garcia Company for $5,600 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,100 to Garcia Company for merchandise sold on July 19 and credited Garcia's accounts receivable for that amount. July 24 Paid Lee Company the balance due, net of discount. July 30 Received the balance due from Garcia Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,800 to Wilson Company for $11,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Chapter10: Financial Statements And Reports
Section: Chapter Questions
Problem 3.3C
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Transcribed Image Text:Requirement
No.
General
Journal
No.
Date
July 01
Date
June 30
General
Ledger
Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal
entries by account title. Click on any of the individual amounts to return to the underlying journal entry.
Cash
Debit
Common stock
Debit
Trial Balance
Credit
Credit
000
Schedule of
Receivables
General Ledger Account
Balance
27,000
Balance
< General Journal
40,000
Schedule of
Payables
No.
Prey
Date
July 01
Trial Balance >
1 of 1
Income
Statement
MacBook Air
F6
Merchandise Inventory
Debit
Impact on
Income
Next
F7
Credit
DII
FO
Balance
13,000
Transcribed Image Text:Prepare journal entries to record the following merchandising transactions of Turner's, which uses the perpetual inventory system and
the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts
Payable-Griffin.)
July 1 Purchased merchandise from Griffin Company for $10,400 under credit terms of 1/15, n/30, FOB shipping point,
invoice dated July 1.
July 2 Sold merchandise to Wilson Company for $3,100 under credit terms of 2/10, n/60, FOB shipping point, invoice
dated July 2. The merchandise had cost $1,860.
July 3 Paid $1,005 cash for freight charges on the purchase of July 1.
July 8 Sold merchandise that had cost $3,700 for $6,100 cash.
July 9 Purchased merchandise from Lee Company for $4,400 under credit terms of 2/15, n/60, FOB destination, invoice
dated July 9.
July 11 Returned $900 of merchandise purchased on July 9 from Lee Company and debited its account payable for that
amount.
July 12 Received the balance due from Wilson Company for the invoice dated July 2, net of the discount.
July 16 Paid the balance due to Griffin Company within the discount period.
July 19 Sold merchandise that cost $3,900 to Garcia Company for $5,600 under credit terms of 2/15, n/60, FOB shipping
point, invoice dated July 19.
July 21 Gave a price reduction (allowance) of $1,100 to Garcia Company for merchandise sold on July 19 and credited
Garcia's accounts receivable for that amount.
July 24 Paid Lee Company the balance due, net of discount.
July 30 Received the balance due from Garcia Company for the invoice dated July 19, net of discount.
July 31 Sold merchandise that cost $6,800 to Wilson Company for $11,400 under credit terms of 2/10, n/60, FOB shipping
point, invoice dated July 31.
Requirement
General
Journal
General
Ledger
Trial Balance
Schedule of
Receivables
Schedule of
Payables
General Ledger Account
Prev
Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal
entries by account title. Click on any of the individual amounts to return to the underlying journal entry.
Income
Statement
1 of 1
MacBook Air
Impact on
Income
Next
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