Consider the following transactions that occurred in September 2012 for Aqumarin
ID: 2349193 • Letter: C
Question
Consider the following transactions that occurred in September 2012 for Aqumarines. Sep 4 Purchased inventory on terms 1/15, n/eom, $5,000. 4 Purchased inventory for cash of $1,700. 6 Returned $500 of inventory from September 4 purchase. 8 Sold goods on terms of 2/15, n/35 of $6,000 that cost $2,640. 10 Paid for goods purchased September 3. 12 Received goods from September 8 sale of $400 that cost $160. 23 Received payment from September 8 customer. 25 Sold goods to Smithsons for $1,100 that cost $400. Terms of n/30 were offered. As a courtesy to Smithsons, $75 of freight was added to the invoice for which cash was paid directly to UPS by Aquamarines. 29 Received payment from Smithsons. 1. Journalize September transactions for Aquamarines, Inc. No explanations are required. Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT DEBIT Sep 3 4 6 8 8 10 Accounts payable 5,000 12 12 23 Cash ($5,600 - $112 discount) 5,488 25 25 29 Consider the following transactions that occurred in September 2012 for Aqumarines. Sep 4 Purchased inventory on terms 1/15, n/eom, $5,000. 4 Purchased inventory for cash of $1,700. 6 Returned $500 of inventory from September 4 purchase. 8 Sold goods on terms of 2/15, n/35 of $6,000 that cost $2,640. 10 Paid for goods purchased September 3. 12 Received goods from September 8 sale of $400 that cost $160. 23 Received payment from September 8 customer. 25 Sold goods to Smithsons for $1,100 that cost $400. Terms of n/30 were offered. As a courtesy to Smithsons, $75 of freight was added to the invoice for which cash was paid directly to UPS by Aquamarines. 29 Received payment from Smithsons.Explanation / Answer
Sept. 3 Debit: Merchandise Inventory 5,000 Credit: Accounts payable 5,000 Sept. 4 Debit: Merchandise inventory 1700 Credit: Cash 1700 Sept. 6 Debit: Cash 500 Credit: Merchandise inventory 500 Sept. 8 Debit: Accounts receivable 6,000 Credit: Sales 6,000 Debit: Cost of goods sold 2640 Credit: Merchandise inventory 2640 Sept. 10 Debit: Accounts payable 5000 Credit: Merchandise inventory 50 Credit: Cash 4950 (THis is 5000*(1-.01) = 4950, which is the cash paid after the discount.) Sept. 12 Debit: SAles returns and allowances 400 Credit: Accounts receivalbe 400 Debit: MErchandise inventory 160 Credit: Cost of goods sold 160 Sept. 23 Debit: Cash 5488 Debit: sales discounts 112 Credit: Accounts receivable 5600 (this is 6000 - 400 = 5600. 5600*(1-.02) = 5488, which is the cash received after the discount) Sept 25 Debit: Accounts receivable 1175 Credit: Sales 1100 Credit: Cash 75 Debit: cost of goods sold 400 Credit: Merchandise inventory 400 Sept 29 Debit: Cash 1175 Credit: Accounts receivable 1175