Nov. 3. Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4. Sold merchandise for cash, $37,680. The cost of the merchandise sold was $22,600.
5. Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
6. Returned $13,500 ($18,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co.
11. Sold merchandise on account to Quinn Co., list price $24,000, trade discount 35%, terms 1/10, n/30. The cost of the merchandise sold was $9,400.
13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6 and discount.
14. Sold merchandise on VISA, $236,000. The cost of the merchandise sold was $140,000.
15. Paid Papoose Creek Co. on account for purchase of November 5, less discount.
21. Received cash on account from sale of November 11 to Quinn Co., less discount.
24. Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30. The cost of the merchandise sold was $34,000.
28. Paid VISA service fee of $3,540.
30. Received merchandise returned by Rabel Co. from sale on November 24, $8,400. The cost of the returned merchandise was $5,000.
Instructions
Journalize the transactions.
Answer:
Nov. 3 Merchandise Inventory 63,750
Accounts Payable—Moonlight Co. 63,750
[$85,000 – ($85,000 × 25%)] = $63,750.
4 Cash 37,680
Sales 37,680
4 Cost of Merchandise Sold 22,600
Merchandise Inventory 22,600
5 Merchandise Inventory 48,310
Accounts Payable—Papoose Creek Co. 48,310
6 Accounts Payable—Moonlight Co. 13,500
Merchandise Inventory 13,500
11 Accounts Receivable—Quinn Co. 15,600
Sales 15,600
[$24,000 – ($24,000 × 35%)] = $15,600.
11 Cost of Merchandise Sold 9,400
Merchandise Inventory 9,400
13 Accounts Payable—Moonlight Co. 50,250
Cash 49,245
Merchandise Inventory 1,005
14 Cash 236,000
Sales 236,000
14 Cost of Merchandise Sold 140,000
Merchandise Inventory 140,000
15 Accounts Payable—Papoose Creek Co. 48,310
Cash 47,360
Merchandise Inventory 950
21 Cash 15,444
Sales Discounts 156
Accounts Receivable—Quinn Co. 15,600
Nov. 24 Accounts Receivable—Rabel Co. 56,900
Sales 56,900
24 Cost of Merchandise Sold 34,000
Merchandise Inventory 34,000
28 Credit Card Expense 3,540
Cash 3,540
30 Sales Returns and Allowances 8,400
Accounts Receivable—Rabel Co. 8,400
30 Merchandise Inventory 5,000
Cost of Merchandise Sold 5,000