The following selected transactions were completed during April between Swan Com
ID: 2417923 • Letter: T
Question
The following selected transactions were completed during April between Swan Company and Bird Company:
Bird Company paid Swan Company on account for purchase of April 24.
Can you do both please? I'm not sure if I am journalizing this right.
Apr. 2 Swan Company sold merchandise on account to Bird Company, $32,000, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $330, which was added to the invoice. The cost of the merchandise sold was $19,200. 8 Swan Company sold merchandise on account to Bird Company, $49,500, terms FOB destination, 1/15, n/eom. The cost of the merchandise sold was $29,700. 8 Swan Company paid freight of $710 for delivery of merchandise sold to Bird Company on April 8. 12 Bird Company paid Swan Company for purchase of April 2. 23 Bird Company paid Swan Company for purchase of April 8. 24 Swan Company sold merchandise on account to Bird Company, $67,350, terms FOB shipping point, n/eom. The cost of the merchandise sold was $40,400. 26 Bird Company paid freight of $875 on April 24 purchase from Swan Company. 30Bird Company paid Swan Company on account for purchase of April 24.
Can you do both please? I'm not sure if I am journalizing this right.
Explanation / Answer
In the Books of Swan company Date Account titles Debit $ Credit $ 2 Bird company $32,000 Sales $32,000 2 Bird company $ 330 Cash $ 330 2 Cost of Merchandise sold $19,200 Merchandise Inventory $19,200 8 Bird company $49,500 Sales $49,500 8 Cost of Merchandise sold $29,700 Merchandise Inventory $29,700 8 Freight Expense $ 710 Cash $ 710 12 Sales Returns and Allowances $ 7,500 Bird company $ 7,500 12 Merchandise Inventory $ 4,800 Cost of Merchandise sold $ 4,800 12 Cash $31,690 Sales Discount $ 640 Bird company $32,330 23 Cash $41,580 Sales Discount $ 420 Bird company $42,000 24 Bird company $67,350 Sales $67,350 24 Cost of Merchandise sold $40,400 Merchandise Inventory $40,400 30 Cash $67,350 Bird Company $67,350 In the books of Bird company Date Account titles Debit $ Credit $ 2 Merchandise Inventory $32,330 Swan Company $32,330 8 Merchandise Inventory $49,500 Swan Company $49,500 12 Swan Company $ 7,500 Merchandise Inventory $ 7,500 12 Swan Company $32,330 Cash $31,690 Merchandise Inventory $ 640 23 Swan Company $42,000 Cash $41,580 Merchandise Inventory $ 420 24 Merchandise Inventory $67,350 Swan Company $67,350 26 Merchandise Inventory $ 875 Cash $ 875 30 Swan Company $67,350 Cash $67,350