Requirement: Journal Entry Buyer: Mindoro Enterprises Seller: GTI, Inc Mindoro Enterprises purchased more merchandise worth 42,000 from GTI Inc. on terms 5/10, n/30, FOB SHIPPING POINT. Freightcharges Of 1,800 was PAID BY GTI Inc.

Requirement: Journal Entry Buyer: Mindoro Enterprises Seller: GTI, Inc Mindoro Enterprises purchased more merchandise worth 42,000 from GTI Inc. on terms 5/10, n/30, FOB SHIPPING POINT. Freightcharges Of 1,800 was PAID BY GTI Inc.

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

Requirement: Journal Entry

Buyer: Mindoro Enterprises Seller:

GTI, Inc Mindoro Enterprises purchased more merchandise worth 42,000 from GTI Inc. on terms 5/10, n/30, FOB SHIPPING POINT. Freightcharges Of 1,800 was PAID BY GTI Inc.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
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Sales-related transactions The- following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account, $14,000. terms FOB shipping point, n/com. The cost of merchandise sold was $8,400. 8. Sold merchandise on account. $20,000. terms FOB destination. 1/10. n/30. The cost of merchandise sold was $14,000. 16. Sold merchandise on account, $19-500. terms FOB shipping point, n/30. The cost of merchandise sold was $11,700. 18. Received check for amount due for sale on January 8. 19. Issued credit memorandum for $4,500 for merchandise returned from sale on January 16. The cost of the merchandise returned was $2,700. 26. Received check for amount due for sale on January 16 less credit memorandum of January 19. 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during January to customers under shipping terms of FOB destination. 31. Received cheek for amount due for sale of January 6. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Affordable Supplies Co. Identify each transaction by date.