The following transactions were completed by McGill Company during August. McGill uses the perpetual inventory method. August 5 Purchased $3,500 of merchandise from Hot Air Inc. on account. In addition, we paid shipping costs of $230 for a total of $3,730. Terms 3/15, n/30. No discount available on shipping costs. 9 Returned $700 of merchandise to Hot Air for credit. 12 Sold $1,400 of merchandise to Crazy Parties on account, terms 2/10, n/30. Our cost was $800. 15 Crazy Parties returned $200 of merchandise from the August 12 purchase. The merchandise was the wrong colour, so is not defective. Our cost was $120. 17 Dalhousie Company purchased $4,000 of merchandise on account, terms 2/10, n/30. Our cost was $2,800. 18 Paid Hot Air the amount owed. (you figure out the amount) 20 Received payment in full from Crazy Parties. (you figure out the amount) 22 Purchased $900 of supplies on account from Columbia Company. 26 Dalhousie Company returned $700 of merchandise that was damaged during delivery. It cannot be resold. 30 Received payment from Dalhousie Company. Instructions: Journalize the above transactions.
Question 3.
The following transactions were completed by McGill Company during August. McGill uses the perpetual inventory method.
|
August 5 |
Purchased $3,500 of merchandise from Hot Air Inc. on account. In addition, we paid shipping costs of $230 for a total of $3,730. Terms 3/15, n/30. No discount available on shipping costs. |
|
9 |
Returned $700 of merchandise to Hot Air for credit. |
|
12 |
Sold $1,400 of merchandise to Crazy Parties on account, terms 2/10, n/30. Our cost was $800. |
|
15 |
Crazy Parties returned $200 of merchandise from the August 12 purchase. The merchandise was the wrong colour, so is not defective. Our cost was $120. |
|
17 |
Dalhousie Company purchased $4,000 of merchandise on account, terms 2/10, n/30. Our cost was $2,800. |
|
18 |
Paid Hot Air the amount owed. (you figure out the amount) |
|
20 |
Received payment in full from Crazy Parties. (you figure out the amount) |
|
22 |
Purchased $900 of supplies on account from Columbia Company. |
|
26 |
Dalhousie Company returned $700 of merchandise that was damaged during delivery. It cannot be resold. |
|
30 |
Received payment from Dalhousie Company. |
Instructions:
Journalize the above transactions.
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