Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Harrison Company during November of the current year: Nov. 3. Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 20%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $34,690. The cost of the merchandise sold was $24,670. 5. Purchased merchandise on account from Papoose Creek Co., $46,100, terms FOB shipping point, 2/10, n/30, with prepaid freight of $780 added to the invoice. 6. Returned $16,000 ($20,000 list price less trade discount of 20%) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co., $14,740 with terms n/15. The cost of the merchandise sold was $8,660. 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $235,120. The cost of the merchandise sold was $136,990. 15. Paid Papoose Creek Co. on account for purchase of November 5. 23. Received cash on account from sale of November 8 to Quinn Co. 24. Sold merchandise on account to Rabel Co., $62,600, terms 1/10, n/30. The cost of the merchandise sold was $34,960. 28. Paid VISA service fee of $3,340. 30. Paid Quinn Co. a cash refund of $1,490 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise.

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Inventories
Section: Chapter Questions
Problem 6.3BE: Perpetual inventory using LIFO Beginning inventory, purchases, and sales for Item 88-HX are as...
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Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System

The following were selected from among the transactions completed by Harrison Company during November of the current year:

Nov. 3. Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 20%, terms FOB destination, 2/10, n/30.
4. Sold merchandise for cash, $34,690. The cost of the merchandise sold was $24,670.
5. Purchased merchandise on account from Papoose Creek Co., $46,100, terms FOB shipping point, 2/10, n/30, with prepaid freight of $780 added to the invoice.
6. Returned $16,000 ($20,000 list price less trade discount of 20%) of merchandise purchased on November 3 from Moonlight Co.
8. Sold merchandise on account to Quinn Co., $14,740 with terms n/15. The cost of the merchandise sold was $8,660.
13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14. Sold merchandise on VISA, $235,120. The cost of the merchandise sold was $136,990.
15. Paid Papoose Creek Co. on account for purchase of November 5.
23. Received cash on account from sale of November 8 to Quinn Co.
24. Sold merchandise on account to Rabel Co., $62,600, terms 1/10, n/30. The cost of the merchandise sold was $34,960.
28. Paid VISA service fee of $3,340.
30. Paid Quinn Co. a cash refund of $1,490 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise.
Nov. 3
Merchandise Inventory V
62,300
Accounts Payable-Moonlight Co. V
62,300 X
Cash v
Nov. 4-sale
34,690
Sales v
34,690
Nov. 4-cost
Cost of Merchandise Sold v
24,670
Merchandise Inventory v
24,670 V
Nov. 5
Merchandise Inventory
45,958
Accounts Payable-Papoose Creek Co. V
45,958 V
Accounts Payable-Moonlight Co. V
Nov. 6
Merchandise Inventory V
Accounts Receivable-Quinn Co. V
Nov. 8-sale
Sales v
Nov. 8-cost
Cost of Merchandise Sold v
Merchandise Inventory v
I II 1I I1
Transcribed Image Text:Nov. 3 Merchandise Inventory V 62,300 Accounts Payable-Moonlight Co. V 62,300 X Cash v Nov. 4-sale 34,690 Sales v 34,690 Nov. 4-cost Cost of Merchandise Sold v 24,670 Merchandise Inventory v 24,670 V Nov. 5 Merchandise Inventory 45,958 Accounts Payable-Papoose Creek Co. V 45,958 V Accounts Payable-Moonlight Co. V Nov. 6 Merchandise Inventory V Accounts Receivable-Quinn Co. V Nov. 8-sale Sales v Nov. 8-cost Cost of Merchandise Sold v Merchandise Inventory v I II 1I I1
Nov. 13
Accounts Payable-Moonlight Co. V
Cash v
Cash v
Nov. 14-sale
Sales v
Nov. 14-cost Cost of Merchandise Sold v
Merchandise Inventory v
Nov. 15
Accounts Payable-Papoose Creek Co. V
Cash v
Nov. 23
Cash v
Accounts Receivable-Quinn Co. V
Nov. 24-sale Accounts Receivable-Rabel Co. V
Sales
Nov. 24-cost Cost of Merchandise Sold
Merchandise Inventory v
I0 II II II II II II
Transcribed Image Text:Nov. 13 Accounts Payable-Moonlight Co. V Cash v Cash v Nov. 14-sale Sales v Nov. 14-cost Cost of Merchandise Sold v Merchandise Inventory v Nov. 15 Accounts Payable-Papoose Creek Co. V Cash v Nov. 23 Cash v Accounts Receivable-Quinn Co. V Nov. 24-sale Accounts Receivable-Rabel Co. V Sales Nov. 24-cost Cost of Merchandise Sold Merchandise Inventory v I0 II II II II II II
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