Journal Entries Exam 2
Jul. 24 - Paid Leight Co. the balance due after deducting the discount. (purchased 2,200 of merchandise and received 200 of memorandum = $2000)
Accounts Payable -$2,000 Merchandise Inventory -$40 Cash -$1,960 (2,000-40)
Jul. 11 - Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.
Accounts Payable -$200 debit Merchandise Inventory -$200
Jul. 8 - Sold merchandise that had cost $1,300 for $1,700 cash.
Cash -$1,700 debit Sales -$1,700 credit Cost of Goods Sold -$1,300 debit Merchandise Inventory -$1,300 credit
Jul. 12 - Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. (Jul. 2 - Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500.)
Cash -$882 debit Sales Discounts-$18 (900x.02=$18 sales disc.) debit Accounts Receivable - $900 (882+18)
Jul. 16 - Paid the balance due to Boden Company within the discount period. (Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.)
Accounts Payable -$6,000 debit Merchandise Inventory-$60 (6,000x.02)credit Cash -$5,940 (6,000-60) credit
Jul. 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.
Accounts Receivable -$1,200 debit Sales -$1,200 credit Cost of Goods Sold -$800 debit Merchandise Inventory -$800 credit
Jul. 2 - Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500.
Accounts Receivable -$900 debit Sales .-$900 credit Costs of Goods Sold -$500 debit Merchandise Inventory -$500 credit
Jul. 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.
Accounts receivable -$7,000 debit Sales -$7,000 credit Cost of Goods Sold -$4,800 debit Merchandise Inventory -$4,800 credit
Jul. 30 - Received the balance due from Art Co. for the invoice dated July 19, net of discount. (Jul. 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.) (Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.)
Cash -$980 debit Sales discounts -$20 (1,000x.02=discount) debit Accounts receivable -$1,000
Jul. 3 - Paid $125 cash for freight charges on the purchase of July 1.
Merchandise Inventory -$125 debit Cash -$125 credit
Jul. 9 - Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
Merchandise Inventory -$2,200 debit Accounts Payable -$2,200 credit
Jul. 1 - Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.
Merchandise Inventory -$6,000 debit Accounts Payable -$6,000 credit
Jul. 21 - Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.
Sales Returns and allowances -$200 debit Accounts Receivable -$200 credit
