Kimmel Accounting6e PRIN OF ACCT III ACCT 2101 CALCULATOR ST

Kimmel, Accounting,6e PRIN. OF ACCT Iⅈ (ACCT 2101 CALCULATOR STANDARD VIEW PRINTER VERSION ·BACK NEXT Exercise 5-4 On June 10, Blossom Company purchased $7,100 of merchandise from Sunland Company, terms 4/10, n/30. Blossom Company pays the freight costs of $350 on June 11. Goods totaling $600 are returned to Sunland Company for credit on June 12. On June 19, Blossom Company pays Sunland Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Blossom Company. (If no entry is required, select \"No Entry\" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT

Solution

Bloosom Company Date Account Titles & Explanations Debit Credit 10-Jun Merchandise inventory 7,100 Accounts payable 7,100 11-Jun Merchandise inventory 350 Cash 350 12-Jun Accounts payable 600 merchandise inventory 600 19-Jun Accounts payable (7,100-600) 6,500 Merchandise inventory (6500*4%) 260 Cash (6500*96%) 6240 Sunland company Date Account Titles & Explanations Debit Credit 10-Jun Accounts receivable 7,100 sales 7,100 Cost of goods sold 2,010 Merchandise inventory 2,010 11-Jun No entry 12-Jun Sales return and allowance 600 Accounts receivable 600 Merchandise inventory 240 Cost of goods sold 240 19-Jun Cash 6,240 Sales discount 260 Accounts receivable 6,500