Problem #8 Purchase Transactions Several purchase transactions of the Joey Beringuela Pharmacy are presented below. The credit terms of the entity are 3/10, n/30. Purchased merchandise for cash, P200,000; FOB shipping point. Purchased merchandise on account, P700,000. Returned merchandise purchased on account, P50,000. Paid supplier the amount due. Paid freight charges of P7,000 on merchandise acquired last Oct. 6. Oct. 6 12 15 17 19 Required: Prepare the journal entries.

Problem #8 Purchase Transactions Several purchase transactions of the Joey Beringuela Pharmacy are presented below. The credit terms of the entity are 3/10, n/30. Purchased merchandise for cash, P200,000; FOB shipping point. Purchased merchandise on account, P700,000. Returned merchandise purchased on account, P50,000. Paid supplier the amount due. Paid freight charges of P7,000 on merchandise acquired last Oct. 6. Oct. 6 12 15 17 19 Required: Prepare the journal entries.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.7EX: Purchase-related transactions Journalize entries for the following related transactions of Lilly...

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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.
Purchase-related transactions The following selected transactions were completed by Epic Co. during August of the curr ent year: Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30. 9. Issued debit memorandum for $2500 ($2450 net of 2% discount) for merchandise from the August 3 purchase that was damaged in shipment. 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/com. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9 31. Paid for invoice of August 10. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.
( Appendix 5A) Sales Discounts Ramsden Inc. provided consulting services with a gross price of $25,000 and terms of 2/10, n/30. Required: 1. Prepare the necessary journal entries to record the sale under the gross method. 2. Prepare the necessary journal entries to record collection of the receivable, assuming the customer pays within 10 days. 3. Prepare the necessary journal entries to record collection of the receivable, assuming the customer pays after 10 days.
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.