Accounting 1 - Quiz over Purchases and Sales JE
Purchased merchandise with an invoice price of $114,000 and credit terms of 2/10, n/30
8/1 Merch Inventory 114,000 A/P 114,000
Paid the supplier the amount owed from the Aug 1. purchase
8/11 A/P 114,000 Merch Inventory 2,280 Cash 111,720
Paid the supplier the amount owed on the 9/15 purchase
9/29 A/P 70,000 Cash 70,000
Purchased merchandise with an invoice price of $70,000 and credit terms of 4/5, n/15.
9/5 Merch Inventory 70,000 A/P 70,000
Record payment by Santa Fe after the discount period.
A/P 25,200 Cash 25,200
Record payment by Santa Fe within discount period.
A/P 25,200 Merch Inventory 756 Cash 24,444
Record Mesa Wholesalers Sale of Merchandise "as is" (with no returns) to Santa Fe Retailing with credit terms of 3/10 ,n/60 and an invoice price of $25,200.
A/R 25,200 Sales 25,200
Record Santa Fe Retailing purchase of merchandise "as is" (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60, and an invoice price of $25,200.
Merch Inventory 25,200 A/P 25,200
Mary discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's Accounts Receivable for $500 to compensate for the damage.
5/8 Sales Returns and Allowance 500 A/R 500
Paid the amount due from the Nov. 5 purchase. minus the return on Nov. 7.
11/15 A/P 24,200 Merch Inventory 1,210 Cash 22,990
Purchased 1250 units of product at a cost of $20 per unit. Terms of the sale are 5/10, n/60; the invoice is dated Nov. 5.
11/5 Merch Inventory 25,000 A/P 25,000
Returned 40 defective units from the Nov. 5 purchase and received full credit.
11/7 A/P 800 Merch Inventory 800
Sold merchandise for $5,400, with credit terms n/30.
4/1 A/R 5,400 Sales 5,400
The cost of the merchandise is $3,240
4/1 CGS $3,240 Merch Inventory $3,240
Received payments for the amount due from the April 1 sale less than the return on April 4.
4/11 Cash 4, 780 A/R 4,780
The merchandise, which had cost $372, is returned to inventory.
4/4 Merch Inventory 372 CGS 372
The customer in the April 1 sale returned $620 of merchandise on full credit.
4/4 Sales Returns and Allowances 620 A/R 620
Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.
5/15 Cash 10,976 Sales Discount 224 A/R 11,200
Allied made its first and only purchase of inventory for the period on 5/3 for 2,000 units at a price of $9 per unit (total cost is 18,000)
5/3 Merch Inventory 18,000 Cash 18,000
Allied sold 1,000 units in inventory for $13 per unit (invoice total: $3000) to Macy Company under credit terms of 2/10, n/60
5/5 A/R 13,000 Sales 13,000
Record the cost of goods sold
5/5 CGS 9,000 Merch Inventory 9,000
Allied restores the unit, which costs $900, to its inventory
5/7 Merch Inventory 900 CGS 900
Macy returns 100 units because they did not fit the customer's needs (invoice amount: $1,300)
5/7 Sales Returns and Allowances 1,300 A/R 1,300
Record the cost of goods sold to Santa Fe, $17,186
CGS $17,186 Merch Inventory $17,186
Record Mesa's Receipt of payment from the Santa Fe within the discount period.
Cash 24,444 Sales Discounts 756 A/R 25,200
Record Mesa's receipt of payment from Santa Fe after the discount period.
Cash 25,200 A/R 25,200