July 1 Purchased merchandise from Boden Company for 6100 und

July 1 Purchased merchandise from Boden Company for $6,100 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1 2 Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost S508 3 Paid $130 cash for freight charges on the purchase of July 1 8 Sold merchandise that had cost $1,400 for $1,800 cash 9 Purchased merchandise from Leight Co. for $2,400 under credit terms of 2/15, n/60, FOB destination, 11 Received a $400 credit memorandum from Leight Co. for the return of part of the merchandise 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 S1,200 to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 21 Issued a $300 credit memorandum to Art Co. for an allowance on goods sold on July 19 24 Paid Leight Cothe balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount 31 Sold merchandise that cost $4,900 to Creek Co. for $6,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31 Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system.

Solution

In the books of Blink Company:

Date	Account Titles	Debit	Credit
		$	$
July 1	Merchandise Inventory	6,100
	Accounts Payable: Boden Company		6,100
July 2	Accounts Receivable : Creek Company	950
	Sales		950
	Cost of Goods Sold	508
	Merchandise Inventory		508
July 3	Merchandise Inventory	130
	Cash		130
July 8	Cash	1,800
	Sales		1,800
	Cost of Goods Sold	1,400
	Merchandise Inventory		1,400
July 9	Merchandise Inventory	2,400
	Accounts Payable : Leight Company		2,400
July 11	Accounts Payable : Leight Company	400
	Merchandise Inventory		400
July 12	Cash	931
	Sales Discounts	19
	Accounts Receivable: Creek Co.		950
July 16	Accounts Payable: Boden Company	6,100
	Cash		5,978
	Merchandise Inventory		122
July 19	Accounts Receivable : Art Co.	1,800
	Sales		1,800
	Cost of Goods Sold	1,200
	Merchandise Inventory		1,200
July 21	Sales Returns and Allowances	300
	Accounts Receivable : Art Co.		300
July 24	Accounts Payable : Leight Company	2,000
	Cash		1,960
	Merchandise Inventory		40
July 30	Cash	1,470
	Sales Discount	30
	Accounts Receivable : Art Co.		1,500
July 31	Accounts Receivable : Creek Co.	6,800
	Sales		6,800
	Cost of Goods Sold	4,900
	Merchandise Inventory		4,900