Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company: Apr. 2. Swan Company sold merchandise on account to Bird Company, $14,100, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $345, which was added to the invoice. The cost of the merchandise sold was $8,900. 8. Swan Company sold merchandise on account to Bird Company, $22,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $13,200. 8. Swan Company paid freight of $780 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $8,900, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,300. 26. Bird Company paid freight of $430 on April 24 purchase from Swan Company.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 5E: Inventory Write-Down The following information is taken from Aden Companys records: Required: 1....
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Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System

The following selected transactions were completed during April between Swan Company and Bird Company:

Apr. 2. Swan Company sold merchandise on account to Bird Company, $14,100, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $345, which was added to the invoice. The cost of the merchandise sold was $8,900.
8. Swan Company sold merchandise on account to Bird Company, $22,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $13,200.
8. Swan Company paid freight of $780 for delivery of merchandise sold to Bird Company on April 8.
12. Bird Company paid Swan Company for purchase of April 2.
18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise.
23. Bird Company paid Swan Company for purchase of April 8.
24. Swan Company sold merchandise on account to Bird Company, $8,900, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,300.
26. Bird Company paid freight of $430 on April 24 purchase from Swan Company.
Date
Account
Debit
Credit
Apr.
2-
Accounts Receivable-Bird Company v
sale
Sales v
Date
Account
Debit
Credit
Apr.
2-
freight
Accounts Receivable-Bird Company v
Cash v
Date
Account
Debit
Credit
Apr. 2-cost Cost of Merchandise Sold v
Merchandise Inventory v
Date
Account
Debit
Credit
Apr.
8-
Accounts Receivable-Bird Company v
sale
Sales v
Date
Account
Debit
Credit
Apr. 8-cost Cost of Merchandise Sold v
Merchandise Inventory v
Date
Account
Debit
Credit
Apr. 8-freight Delivery Expense v
Cash v
Date
Account
Debit
Credit
Apr. 12 Cash v
Accounts Receivable-Bird Company v
Date
Account
Debit
Credit
Apr. 18 Customer Refunds Payable v
Cash v
Date
Account
Debit
Credit
Apr.
23
Cash v
Accounts Receivable-Bird Company v
Transcribed Image Text:Date Account Debit Credit Apr. 2- Accounts Receivable-Bird Company v sale Sales v Date Account Debit Credit Apr. 2- freight Accounts Receivable-Bird Company v Cash v Date Account Debit Credit Apr. 2-cost Cost of Merchandise Sold v Merchandise Inventory v Date Account Debit Credit Apr. 8- Accounts Receivable-Bird Company v sale Sales v Date Account Debit Credit Apr. 8-cost Cost of Merchandise Sold v Merchandise Inventory v Date Account Debit Credit Apr. 8-freight Delivery Expense v Cash v Date Account Debit Credit Apr. 12 Cash v Accounts Receivable-Bird Company v Date Account Debit Credit Apr. 18 Customer Refunds Payable v Cash v Date Account Debit Credit Apr. 23 Cash v Accounts Receivable-Bird Company v
Date
Account
Debit
Credit
Apr. 2
Merchandise Inventory v
Accounts Payable-Swan Company v
Date
Account
Debit
Credit
Apr. 8
Merchandise Inventory v
Accounts Payable-Swan Company v
Date
Account
Debit
Credit
Apr. 12
Accounts Payable-Swan Company
Cash v
Date
Account
Debit
Credit
Apr. 18
Cash v
Merchandise Inventory v
Date
Account
Debit
Credit
Apr. 23
Accounts Payable-Swan Company v
Cash
Date
Account
Debit
Credit
Apr. 24
Merchandise Inventory v
Accounts Payable-Swan Company v
Date
Account
Debit
Credit
Apr. 26
Merchandise Inventory v
Cash
Transcribed Image Text:Date Account Debit Credit Apr. 2 Merchandise Inventory v Accounts Payable-Swan Company v Date Account Debit Credit Apr. 8 Merchandise Inventory v Accounts Payable-Swan Company v Date Account Debit Credit Apr. 12 Accounts Payable-Swan Company Cash v Date Account Debit Credit Apr. 18 Cash v Merchandise Inventory v Date Account Debit Credit Apr. 23 Accounts Payable-Swan Company v Cash Date Account Debit Credit Apr. 24 Merchandise Inventory v Accounts Payable-Swan Company v Date Account Debit Credit Apr. 26 Merchandise Inventory v Cash
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