Part 1 Consider the following perpetual system merchandising

Part 1: Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable-Avery & Wiest. June 1 Sold merchandise to Avery & Wiest for $9,000; terms 3/5, n/15, FOB destination (cost of sales S6,150) 2 Purchased $4,400 of merchandise from Angolac Suppliers, terms 2/10, n/20, FOB shipping point 4 Purchased merchandise inventory from Bastille Sales for $10,400; terms 2/15, n/45, FOB Bastille Sales. 5 Sold merchandise to Gelgar for $10,000, terms 3/5, n/15, FOB destination (cost of sales S7.200) 6 Collected the amount owing from Avery & Wiest regarding the June 1 sale 12 Paid Angolac Suppliers for the June 2 purchase 20 Collected the amount owing from Gelgar regarding the June 5 sale 30 Paid Bastille Sales for the June 4 purchase Prepare General Journal entries to record the above transactions. (If no entry is required for a transactionevent, select \"No journal entry required\" in the first account field.)

Solution

Journal entris Date Accounts title and explanation Debit $ Credit $ 1-Jun Accounts receivable Dr. 9000 Sales revenue 9000 Cost of goods sold Account dr. 6150      Inventory 6150 2-Jun Inventory Account Dr. 4400    Accounts payable 4400 4-Jun Inventory Account Dr. 10400    Accounts payable 10400 5-Jun Accounts receivable Dr. 10000 Sales revenue 10000 Cost of goods sold Account dr. 7200      Inventory 7200 6-Jun Cash Acount Dr. 8730 Sales discount Dr. 270    Accounts receivable 9000 12-Jun Accounts payable Dr. 4400     Cash account (4400*98%) 4312     Inventory Account 88 20-Jun Cash account Dr. 10000     Accounts receivabale 10000 30-Jun Accounts payable Dr. 10400     Cash account 10400 Req 2: Net sales: Sales (Gross) 19000 Less: sales discount 270 Net sales: 18730 COGS: Cost of goods sold 13350 Gross profit 5380 (Sales -COGS)