14 Below is a list of transactions for the month of December

14. Below is a list of transactions for the month of December 19xx: Dec. 1 Purchased merchandise on credit from Bic 2 Sold merchandise on credit to D, Loo, terms 1/10, n/30, FOB shipping point, $2,000. 3 Sold merchandise for cash, $1,400 s Purchased and received merchandise on credit from Parillo Company, terms 2/10,n/30, FOB shipping point, $8,400. 6 Received freight bill from fiunyon Freight for shipment received on Decembers, $1,140. 8 Sold merchandise on credit to T. Mitchell, terms 1/10, n/30, FOB destination, $7,600, 9 Purchased merchandise from Bickford Company, terms 2/10, n/30, FOB shipping point, $5,300, Including freight costs of $300. Received freight bill from Kunyoit Freight for sales to T. Mitchell on December 8,$582 Il 10 Paid Bickford Company for purchase of December1 12 Received payment in full for D. Loo\'s purchase on December 2 15 Paid Parillo Company half the amount owed on the December 5 purchase 16 Returned faulty merchandise worth $600 to Bickford Company for credit against purchase of December 9. 7 Purchased office supplies from Zucker Company, terms n/10, 5956. Received payment from T, Mitchell for half of the purchase on December 8 Paid Bickford Company in full for the amount owed on the purchase of December 9 less the return on December 16 18 19 19 Sold merchandise to R. Godfrey on credit, terms 2/10, n/30, FOB shipping point, $1,560 20 Returned for credit several items of office supplies purchased on December 17,$256 23 Issued a credit to R. Godfrey for returned merchandise, $360 24 Paid for purchase of December 17 less return on December 20 27 Paid freight company for freight charges for December 6 and 10 28 Received payment of amount owed by R. Godfrey from purchase of December 19 less credit of December 23. 29 Paid Parillo Company for balance of December 5 purchase 31 Sold merchandise for cash,$1,946. 1. Prepare general journal entries to record the transactions, assuming that the periodic inventory system is used and that purchases are recorded initially at their gross purchase price.

Solution

General journal for the month of December 19xx Date Account Title Debit Credit Dec.1 Purchases 14800 Accounts Payable 14800 (Purchase of merchandise from Bickford company on account) Dec.2 Accounts Receivable 2000 Sales 2000 (Sale on account to D.Loo) Dec.3 Cash 1400 Sales 1400 (Cash sales of merchandise) Dec.5 Purchases 8400 Accounts Payable 8400 (Purchase of merchandise from Parillo company on account) Dec.6 Freight in 1140 Accounts Payable 1140 (Freight bill received for purchases from Bickford Co.) Dec.8 Accounts Receivable 7600 Sales 7600 (Sale on account to T.Mitchell) Dec.9 Purchases 5300 Freight in 300 Accounts Payable 5600 (Purchase of merchandise from Bickford company on account) Dec.10 Frieght out 582 Accounts Payable 582 (Freight bill received for sales to T.Mitchell) Dec.11 Accounts Payable 14800 Purchase discount 296 Cash 14504 (Payment received from Bernice wilson) Dec.12 Cash 1980 Sales Discount 20 Accounts Receivable 2000 (Payment received from D.Loo) Dec.15 Accounts Payable 4200 Purchase discount 84 Cash 4116 (Payment made to Parillo company for half the amount) Dec.16 Accounts Payable 600 Purchase Returns 600 (Return of goods to Bickford Company) Dec.17 Office Supplies 956 Accounts Payable 956 (Purchase of office supplies from Zucker Co.on account) Dec.18 Cash 3762 Sales Discount 38 Accounts Receivable 3800 (Payment received from T.Mitchell) Dec.19 Accounts Payable 5000 Cash 4906 Purchase discount 94 (Payment made to Bickford Co. On account) Dec.19 Accounts Receivable 1560 Sales 1560 (Sale of merchandise on account to R.Godfrey) Dec.20 Accounts Payable 256 Office Supplies 256 (Return of office supplies to Zucker Co.) Dec.23 Sales Returns 360 Accounts Receivable 360 (Credit issued to R.Godfrey for returned goods) Dec.24 Accounts Payable 700 Cash 700 (Payment made to Zucker co.on account) Dec.27 Accounts Payable 1722 Cash 1722 (Payment made for freight bill of Dec.6 and Dec.10) Dec.28 Cash 1176 Sales Discount 24 Accounts Receivable 1200 (Payment received from R.Godfrey) Dec.29 Accounts Payable 4200 Cash 4200 (Balance paid to Parillo Co.) Dec.31 Cash 1946 Sales 1946 (Cash sales of merchandise) As the company is following periodic inventory, purchase of merchandise is recorded as purchases, and returns and discounts are recorded as purchase discounts and purchase returns.