Prepare and complete the entire 10-column work sheet for Nelson Company. Follow
ID: 2427401 • Letter: P
Question
Prepare and complete the entire 10-column work sheet for Nelson Company. Follow the structure of Exhibit 4B.1 in Appendix 4B Prepare journal entries to record the following merchandising transactions of Yarvelle Company, which applies the perpetual inventory system. Purchased merchandise from Havel Co. for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated May 2. Sold merchandise to Heather Co. for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated may 4, The merchandise had cost $5,600. Paid $250 cash for freight charges on the purchase of may 2. Sold merchandise the had cost $2,000 for$2,500 cash. Purchased merchandise from Dake Co. for $3,650 under credit terms of 2/15, n/60, FOB destination, invoice dated May 10. Received a $400 credit memorandum from Duke Co. for the return of the merchandise purchased on May 10. Received the balance due from heather Co. for the invoice dated may 4, net of the discount. Paid the balance due to havel Co. Within the discount periods. Sold merchandise that cost $1,450 to Tameron Co. For $2,800 under credit terms of 2/15, n/90, FOB shipping point, invoice dated May 20. Issued a $400 credit memorandum to Tameron Co. for an allowance on good sold from May20. Paid Duke Co. the balance due after deducting the discount. Received the balance due after deducting the discount. Received the balance due from Tameron Co. for the invoice dated may 20. Net of discount and allowance. Sold merchandise that cost $3,600 to heather Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31.Explanation / Answer
Yarvelle Company Journal Entry Date Account Title Dr $ Cr $ May 2. Merchandise Inventory 10,000.00 Accounts Payable-Havel Co 10,000.00 May 4. Sales Revenue 11,000.00 Accounts Receivable -Heather Co 11,000.00 Cost Of goods Sold 5,600.00 Merchandise Inventory 5,600.00 May 5. Merchandise Inventory 250.00 Cash 250.00 May 9. Sales Revenue 2,500.00 Cash 2,500.00 Cost Of goods Sold 2,000.00 Merchandise Inventory 2,000.00 May 10. Merchandise Inventory 3,650.00 Accounts Payable-Duke Co 3,650.00 May 12. Merchandise Inventory 400.00 Accounts Payable-Duke Co 400.00 May 14. Accounts Receivable -Heather Co 11,000.00 Cash 10,780.00 Sales Discount 220.00 May 17. Accounts Payable-Havel Co 10,000.00 Cash 9,900.00 Merchandise Inventory 100.00 May 20. Sales Revenue 2,800.00 Accounts Receivable -Tameron Co 2,800.00 Cost Of goods Sold 1,450.00 Merchandise Inventory 1,450.00 May 22. Sales Allowance 400.00 Accounts Receivable -Tameron Co 400.00 May 25. Accounts Payable-Duke Co 3,250.00 Cash 3,185.00 Merchandise Inventory 65.00 May 30. Accounts Receivable -Tameron Co 2,400.00 Cash 2,352.00 Sales discount 48.00 May 31. Sales Revenue 7,200.00 Accounts Receivable -Heather Co 7,200.00 Cost Of goods Sold 3,600.00 Merchandise Inventory 3,600.00