Answered: Question 5 Consider the following…

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

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 5.36EX: Cost of goods sold and related items The following data were extracted from the accounting records...

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Question 5
Consider the following transactions that occurred in April 2013 for Kings:
April 3 Purchased inventory on terms 1/10, n/e.o.m. $7,000
April 4 Purchased inventory for cash $1,800
April 6 Returned $700 of inventory from April 4 purchase
April 8 Sold goods on term of 2/15, n/35 of $6,000 that cost $2,940
April 10 Paid for goods purchased on April 3
April 12 Received goods from April 8 sale of $500 that cost $220
April 23 Received payment from April 8 customer
April 25 Sold goods to Harrisons for $1,200 that cost $450. Terms of n/30 were offered.
As a courtesy to Harrisons, $125 of freight was added to the invoice for which
cash was paid directly to UPS by Kings.
April 29 Received payment from Harrison’s
Required:
6
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1. Journalize April transactions for kings. No explanations are required?

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