The following is a series of related transactions between Leggy Pants and Viking, a chain of retail clothing stores: Sept. 11 Leggy Pants sold Viking 200 pairs of pants on account, terms 2/10, n/30. The cost of these pants to Leggy Pants was $30 per pair, and the sales price was $70 per pair. Sept. 15 Viking returned 5 pairs of pants to Leggy Pants because they were the wrong size. Leggy Pants allowed Viking full credit for this return. Sept. 21 Viking paid the remaining balance due to Leggy Pants within the discount period. Both companies use a Perpetual Inventory system. Required: 1.Record these series of transactions in the general journal of Leggy Pants. Record these series of transactions in the general journal of Viking. Record the transactions in Leggy Pants if receive collection after discount

The following is a series of related transactions between Leggy Pants and Viking, a chain of retail clothing stores: Sept. 11 Leggy Pants sold Viking 200 pairs of pants on account, terms 2/10, n/30. The cost of these pants to Leggy Pants was $30 per pair, and the sales price was $70 per pair. Sept. 15 Viking returned 5 pairs of pants to Leggy Pants because they were the wrong size. Leggy Pants allowed Viking full credit for this return. Sept. 21 Viking paid the remaining balance due to Leggy Pants within the discount period. Both companies use a Perpetual Inventory system. Required: 1.Record these series of transactions in the general journal of Leggy Pants. Record these series of transactions in the general journal of Viking. Record the transactions in Leggy Pants if receive collection after discount

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 1CP: Block Foods, a retail grocery store, has agreed to purchase all of its merchandise from Square...

See similar textbooks

Required: 1.Record these series of transactions in the general journal of Leggy Pants.

Record these series of transactions in the general journal of Viking.
Record the transactions in

Leggy Pants if receive collection after discount period
Viking if pays after discount period

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Block Foods, a retail grocery store, has agreed to purchase all of its merchandise from Square Wholesalers. In return. Block receives a special discount on purchases. Over recent months, Square noticed that purchases by Block had been falling off. At first, Square simply thought that business might be down for Block and was hopeful that their purchases would pick up. When business with Block did not return to a normal level, Square requested financial statements from Block. Squares records indicate that Block purchased 300,000 worth of merchandise during 20-1, the most recent year. Selected information taken from Block's financial statements is as follows: REQUIRED Compute net purchases made by Block during 20-1. Does it appear that Block violated the agreement?
The following is a series of related transactions between Leggy Pants and Viking, a chain of retail clothing stores: Sept. 11 Leggy Pants sold Viking 200 pairs of pants on account, terms 2/10, n/30. The cost of these pants to Leggy Pants was $30 per pair, and the sales price was $70 per pair. Sept. 15 Viking returned 5 pairs of pants to Leggy Pants because they were the wrong size. Leggy Pants allowed Viking full credit for this return. Sept. 21 Viking paid the remaining balance due to Leggy Pants within the discount period. Both companies use a Perpetual Inventory system. Required: Record these series of transactions in the general journal of Leggy Pants Record these series of transactions in the general journal of Viking. Record the transactions in Leggy Pants if receive collection after discount period Viking if pays after discount period
The following is a series of related transactions between Company A, a wholesaler, and Company B, a chain of retail shoe stores: April 9. Company A sold to Company B 300 units of product X on account, terms 3/15, n/60. The cost of product to company A was $90 per unit and the sales price was $130 per unit. April 12. Kazpost Express charged $900 for delivering this merchandise to Company B. This charge was fully paid by Company B. April 20. Company B returned 60 units of product to Company A because they were defective. Company A allowed to Company B full credit for this return. April 22. Company B paid the remaining balance due to Company A within the discount period. Instructions Record this series of transactions in the general journal of Company A (The company records sales at sales gross price.) Record this series of transactions in the general journal of Company B (The company records purchases of merchandise at net cost and uses a Transportation expense…
Beckett Company made the following sales to credit card customers for the month of June. Visa charges a 2% processing fee and Amercian Express charges 3%. June 7 Beckett sold $5,000 of merchandise to Stevens Company. Stevens paid Beckett using a VISA card. The cost of merchandise sold was $2,700. June 18 Beckett sold $4,000 of merchandise to Markell Corp. Markell paid Beckett using an American Express card. The cost of merchandise sold was $1,800. June 26 Beckett sold $6,000 of merchandise to Johnson Co. Johnson paid Beckett using a VISA card. The cost of merchandise sold was $3,200. a. Record the journal entries in the journal provided. b. Calculate the total profit on credit card sales for the month. (Enter all amounts…
The following transactions were selected from among those completed by Bear’s Retail Store:Nov. 20 Sold two items of merchandise to Cheryl Jahn, who paid the $400 sales price incash. The goods cost Bear’s $300.25 Sold 20 items of merchandise to Vasko Athletics at a selling price of $4,000(total); terms 3/10, n/30. The goods cost Bear’s $2,500.28 Sold 10 identical items of merchandise to Nancy’s Gym at a selling price of$6,000 (total); terms 3/10, n/30. The goods cost Bear’s $4,000.29 Nancy’s Gym returned one of the items purchased on the 28th. The item was inperfect condition and credit was given to the customer.Dec. 6 Nancy’s Gym paid the account balance in full.30 Vasko Athletics paid in full for the invoice of November 25.Required:Assuming that Sales Returns and Sales Discounts are reported as contra-revenues, compute NetSales for the two months ended December 31.
On March 1, Warwick’s Co., a women’s clothing store, purchased $73,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. On March 5, Warwick’s returned $9,900 of the merchandise, receiving a credit memo, and then paid the amount due on March 9, within the discount period.
The following transactions were selected from among those completed by Hailey Retailers in the current year: Nov. 20 Sold two items of merchandise to Customer B, who charged the $600 (total) sales price on her Visa credit card. Visa charges Hailey a 2 percent credit card fee. 25 Sold 14 items of merchandise to Customer C at an invoice price of $3,600 (total); terms 2/10, n/30. 28 Sold 12 identical items of merchandise to Customer D at an invoice price of $7,800 (total); terms 2/10, n/30. 30 Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. Dec. 06 Customer D paid the account balance in full. 30 Customer C paid in full for the invoice of November 25. Required: 1. Prepare the appropriate journal entry for each of these transactions. Do not record cost of goods sold. 2. Compute Net Sales. I just need help with the journal entry on Dec. 06 and also computing the net sales.
During the months of January and February, Solitare Corporation sold goods to three customers.The sequence of events was as follows:Jan. 6 Sold goods for $100 to Wizard Inc. with terms 2/10, n/30. The goods costSolitare $70.6 Sold goods to Spyder Corp. for $80 with terms 2/10, n/30. The goods costSolitare $60.14 Collected cash due from Wizard Inc.Feb. 2 Collected cash due from Spyder Corp.28 Sold goods for $50 to Bridges with terms 2/10, n/45. The goods cost Solitare $30.Required:Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the twomonths ended February 28.
On Nov 3, Ali Mercadejas sold merchandise for $180,000 less 15-10 on terms 3/10 2/20 n/30. Two days after, the customer returned $17,000 worth of defective goods. On Nov 13, the customer made a partial payment of $40,000. The account was finally paid in full on Nov 23. How much was the net sales generated from the above transactions?
On March 1, Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the merchandise sold is $152,700. Showcase Co. issues a credit memo on March 5 for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice on March 29. The cost of the merchandise returned is $17,500. Journalize Showcase Co.’s entries for (a) the sale, including the cost of the merchandise sold, (b) the credit memo, including the cost of the returned merchandise, and (c) the receipt of the check for the amount due from Balboa Co. Refer to the Chart of Accounts for exact wording of account titles.
Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the merchandise sold is $152,700. Showcase Co. issues a credit memo for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $17,500.
Presented here are selected transactions of Palmer Company. Palmer sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Grey Company for $6,000, terms 2/10, n/30. 3 Grey Company returned merchandise worth $600 to Palmer. 9 Palmer collected the amount due from Grey Company from the March 1 sale. 15 Palmer sold merchandise for $10,000 in its retail outlet. The customers used their Palmer credit cards. 31 Palmer added 1% monthly interest to the customers' credit card balance. April 10 Palmer collected $3,050 from credit card customers. Instructions Prepare journal entries for the selected transactions.