gross a credit memorandum toward the return of s500 490 net

& gross a credit memorandum toward the return of s500 ($490 net) of merchandise that it net PT n/30 purchased on October 2 Purchased uschased merchandise at a s5,400 price (S5,292 net), invoice dated Octoher 17. terms 2/10 27 Paid fo r the merchandise purchased on October 17, less the discount. Paid for the merchandise purchased on October 2. (Payment was m istakenly delayed, which caused the discount to be lost.) aconnect Cabela\'s, which uses the PROBI Problern ulyPuchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30. Preparing Prepare journal entries to record the following merchandising transactions of C perpetual inventory system and the gross met hod. (Hint: It will help to identify each receivable and pay- able: for example, record the purchase on July 1 in Accounts Payable-Boden.) for merch FOB shipping point, invoice dated July I sol mechandise to Creek Co. for $900 under credit terms of 2/10. n/60. FOB shipping point,set activities system P1 P2 invoice dated July 2. The merchandise had cost $500 3 Paid $125 cash for freight charges on the purchase of July I 8 Sold merchandise that had cost $1,300 for S1,700 cash. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 I1 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $800 to Art Co. for $1.200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19. 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $4,800 to Creek Co. for $7.000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. $1,07

Solution

Inventory A/C Dr

To Boden Company

Creek And Co. Dr

To Sales

Cost of Goods Sold .Dr

To Inventory

Inventory A/c. Dr

To Cash A/c

(Being Freight paid)

Cash A/c . Dr

To Sales

Cost of Goods Sold . Dr

To Inventory A/c

Inventory A/c . Dr

To Leight Co

Leight Co . Dr

To Inventory

Cash A/c . Dr

To Creek Co

Being amount recieved after discount)

Discount A/c. Dr

To Creek Co

Boden Company A/c. Dr

To Cash A/c

Boden Company A/c Dr.

To Discount Recived

Art Co A/c . Dr

To Sales

Cost Of Goods Sold . Dr

To Inventory A/c

Inventory A/c

To Cost of Goods sold

Sales A/c .Dr

To Art Co

Leight Co A/c Dr.

To cash A/c

Leght Co A/c Dr

To Discount recieved

Cash A/c . Dr

To Art Co A/c

(1200-100=1100*98%)

Discount A/c Dr

To Art Co A/c

Creek Co A/c Dr

To Sales

Cost of Goods Sold . Dr

To Inventory

DATE	Particulars	Debit	Credit
1	Inventory A/C Dr To Boden Company	6000	6000
2	Creek And Co. Dr To Sales	900	900
	Cost of Goods Sold .Dr To Inventory	500	500
3	Inventory A/c. Dr To Cash A/c (Being Freight paid)
8	Cash A/c . Dr To Sales	1700	1700
	Cost of Goods Sold . Dr To Inventory A/c	1300	1300
9	Inventory A/c . Dr To Leight Co	2200	2200
11	Leight Co . Dr To Inventory	200	200
12	Cash A/c . Dr To Creek Co Being amount recieved after discount)	882	882
	Discount A/c. Dr To Creek Co	18	18
16	Boden Company A/c. Dr To Cash A/c	5940	5940
	Boden Company A/c Dr. To Discount Recived	60	60
19	Art Co A/c . Dr To Sales	1200	1200
	Cost Of Goods Sold . Dr To Inventory A/c	800	800
21	Inventory A/c To Cost of Goods sold	100	100
	Sales A/c .Dr To Art Co	100	100
21	Leight Co A/c Dr. To cash A/c	2156	2156
	Leght Co A/c Dr To Discount recieved	44	44
30	Cash A/c . Dr To Art Co A/c (1200-100=1100*98%)	1078	1078
	Discount A/c Dr To Art Co A/c	22	22
30	Creek Co A/c Dr To Sales	7000	7000
	Cost of Goods Sold . Dr To Inventory	4800	4800