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