Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. July 3 Paid $125 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,300 for $1,700 cash. July 9 Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. July 12 Received the balance due from Creek Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Boden Company within the discount period. July 19 Sold merchandise that cost $800 to Art Company for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $100 to Art Company for merchandise sold on July 19 and credited Art’s accounts receivable for that amount. July 24 Paid Leight Company the balance due, net of discount. July 30 Received the balance due from Art Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $4,800 to Creek Company for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. set up an income statement

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 34E

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July 1	Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.
July 2	Sold merchandise to Creek Company for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500.
July 3	Paid $125 cash for freight charges on the purchase of July 1.
July 8	Sold merchandise that had cost $1,300 for $1,700 cash.
July 9	Purchased merchandise from Leight Company for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
July 11	Returned $200 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount.
July 12	Received the balance due from Creek Company for the invoice dated July 2, net of the discount.
July 16	Paid the balance due to Boden Company within the discount period.
July 19	Sold merchandise that cost $800 to Art Company for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.
July 21	Gave a price reduction (allowance) of $100 to Art Company for merchandise sold on July 19 and credited Art’s accounts receivable for that amount.
July 24	Paid Leight Company the balance due, net of discount.
July 30	Received the balance due from Art Company for the invoice dated July 19, net of discount.
July 31	Sold merchandise that cost $4,800 to Creek Company for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

set up an income statement

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