Information related to High Co. is presented below. 1. On March 1, the company purchased merchandise from Low Company for $60,000. The credit terms for this purchase is 1/8, net/30. 2. On March 2, the company paid freight costs of $5,000 on merchandise purchased on March 1. 3. On March 5, High Company returned damaged merchandise of $8,000 to Low Company. 4. On March 10, High Company paid the amount due to Low Company in full. Required: (a) How would you record March 10 transaction in the books of High Company using the perpetual inventory method? (b) How would your answer in (a) be different if High Company made the payment on March 8, instead of March 10? (c) On March 20, High Company sold 90% of the merchandise purchased from Low Company at $70,000. How much profit High Company made from this sale of merchandise?

Information related to High Co. is presented below. 1. On March 1, the company purchased merchandise from Low Company for $60,000. The credit terms for this purchase is 1/8, net/30. 2. On March 2, the company paid freight costs of $5,000 on merchandise purchased on March 1. 3. On March 5, High Company returned damaged merchandise of $8,000 to Low Company. 4. On March 10, High Company paid the amount due to Low Company in full. Required: (a) How would you record March 10 transaction in the books of High Company using the perpetual inventory method? (b) How would your answer in (a) be different if High Company made the payment on March 8, instead of March 10? (c) On March 20, High Company sold 90% of the merchandise purchased from Low Company at $70,000. How much profit High Company made from this sale of merchandise?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3PB

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Record journal entries for the following transactions of Furniture Warehouse. A. July 5: Purchased 30 couches at a cost of $150 each from a manufacturer. Credit terms are 2/15, n/30, invoice date July 5. B. July 10: Furniture Warehouse returned 5 couches for a full refund. C. July 15: Furniture Warehouse found 6 defective couches, but kept the merchandise for an allowance of $500. D. July 20: Furniture Warehouse paid their account in full with cash.
Senger Company sold merchandise of $10,000, terms 2/10, n/30, to Burris Inc. on April 23. Burris paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $440 for costs incurred by Burris to repair defective merchandise. A. Journalize the entry by Senger Company to record the customer refund to Burris Inc.* B. Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris's outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo.* *Refer to the Chart of Accounts for exact wording of account titles.
This information relates to Sheridan Supply Co. 1. 2. 3. 4. 5. On April 5 purchased merchandise from Acme Wholesale Company for $25,000, terms 2/10, n/10. On April 6 paid freight costs of $1,000 on merchandise purchased from Acme Wholesale. On April 7 purchased equipment on account for $27,000. On April 8 returned some of April 5 merchandise to Acme Wholesale which cost $2,100. On April 15 paid the amount due to Acme Wholesale in full.
Information related to Splish Brothers Inc. is presented below. rch On April 5, purchased merchandise on account from Sheffield Company for $26,400, terms 4/10, net/30, FOB shipping point. On April 6, paid freight costs of $930 on merchandise purchased from Sheffield. On April 7, purchased equipment on account for $41,900. On April 8, returned damaged merchandise to Sheffield Company and was granted a $4,100 credit for returned merchandise. 5. On April 15, paid the amount due to Sheffield Company in full. 1. 2. 3. 4. Prepare the journal entries to record these transactions on the books of Splish Brothers Inc. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. 1. 2. Date Account Titles and Explanation norcal_archives_20....zip O i Ei W QCA 5.docx C ((( W response essay.docx Debit < 76°F_^ Credit
Information related to Blossom Company is presented below. On April 5, purchased merchandise on account from Swifty Company for $27,900, terms 3/10, net/30, FOB shipping point. On April 6, paid freight costs of $400 on merchandise purchased from Swifty. On April 7, purchased equipment on account for $30,500. On April 8, returned $3,800 of merchandise to Swifty Company. On April 15, paid the amount due to Swifty Company in full. 1. 2 3. 4. 5. Prepare the journal entries to record these transactions on the books of Blossom Company under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation No. 1. N 2. 3. 4. 5. Debit Credit
On June 10, Pharoah Company purchased $8,500 of merchandise on account from Flounder Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $520 on June 11. Damaged goods totaling $500 are returned to Flounder for credit on June 12. The fair value of these goods is $70. On June 19, Pharoah pays Flounder Company in full, less the purchase discount. Both companies use a perpetual inventory system. (a) Your answer is partially correct. Prepare separate entries for each transaction on the books of Pharoah Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit June 10 v Inventory 8,500 Accounts Payable 8,500 June 11 v Inventory 520 Cash 520 June 12 v Accounts Payable 500 Inventory 500 June 19 v Accounts Payable Inventory Cash MacBook Pro
On June 10, Pharoah Company purchased $ 8,500 of merchandise on account from Flounder Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $ 520 on June 11. Damaged goods totaling $ 500 are returned to Flounder for credit on June 12. The fair value of these goods is $ 70. On June 19, Pharoah pays Flounder Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. Shore Co. issued a credit memo for $7,500 to Blue Star Co. for merchandise that was returned. The cost of the merchandise returned was $4,000. Journalize Shore Co.'s entry for the sale, credit memo, and payment of amount due. If an amount box, does not require an entry, leave it blank. Sale Credit Memo Payment 00 00 00 00 00 00 00 00 00 00 00 00
HOW DO I PREPARE A TRANSACTION CHART? On June 10, Wildhorse Company purchased $9,500 of merchandise on account from Novak Company, FOB shipping point, terms 2/10, n/30. Wildhorse pays the freight costs of $590 on June 11. Damaged goods totaling $350 are returned to Novak for credit on June 12. The fair value of these goods is $75. On June 19, Wildhorse pays Novak Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Presented below are transactions related to Pharoah Company. 1. On December 3, Pharoah Company sold $606,000 of merchandise to Flounder Co., terms 3/10, n/30, FOB destination. Pharoah paid $560 for freight charges. The cost of the merchandise sold was $384,100. 2. On December 8, Flounder Co. was granted an allowance of $29,500 for merchandise purchased on December 3. 3. On December 13, Pharoah Company received the balance due from Flounder Co. (a) Prepare the journal entries to record these transactions on the books of Pharoah Company using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. 2.…
Information related to Blossom Co. is presented below. On April 5, purchased merchandise from Mockingbird Company for $22,200 terms 2/10, net/30, FOB shipping point. 1. 2. On April 6 paid freight costs of $720 on merchandise purchased from Mockingbird. 3. On April 7, purchased equipment on account for $31,200. 4. 5. On April 8, returned damaged merchandise to Mockingbird Company and was granted a $5,200 credit for returned merchandise. On April 15 paid the amount due to Mockingbird Company in full. (a) Prepare the journal entries to record these transactions on the books of Blossom Co. under a perpetual inventory system. (Cre account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O fo the amounts.) Date Account Titles and Explanation Debit Credit
Wellgrow Company purchased merchandise for $5,000, terms 2/10 n/30 on February 19. The supplier paid $200 freight and sent Wellgrow an invoice for the merchandise of $5,000 plus the freight charge of $200. Wellgrow uses the perpetual inventory system. On February 23, Wellgrow returned $700 of the merchandise. On February 26, Wellgrow paid the amount owing. On February 28, Wellgrow sold merchandise to AAA Company for $3,000. Wellgrow's cost was $2,200 Required: Journalize the above transactions.