Prepare journal entries for the following, assuming the company uses a perpetual
ID: 2451140 • Letter: P
Question
Prepare journal entries for the following, assuming the company uses a perpetual inventory method and records purchases at their net amounts. June 1 Purchased merchandise from Crane Company for $870 with the terms of 3/10, n/40. June 3 Returned $200 of the merchandise to the Crane Company. June 5 Purchased merchandise from the Tory Company for $600 with the terms of 2/10, n/30. June 6 Paid the amount owed to the Crane Company. June 8 Returned $100 of the merchandise to the Tory Company. June 12 Sold all of the merchandise on hand from the Crane Company for $1,600 and collected 6% sales tax in addition to the sales price. June 18 Paid the amount owed to the Tory Company in full.
Explanation / Answer
SOLUTION :
DATE
ACCOUNT TITLE
DEBIT
CREDIT
JUN 1.
INVENTORY
843.90
CRANE COMPANY
843.90
(870 X 97%)
JUN 3.
CRANE COMPANY
194.00
INVENTORY
194.00
(200 X 97%)
JUN 5.
INVENTORY
588.00
TORY COMPANY
588.00
(600 X 98%)
JUN 6.
CRANE COMPANY
649.90
CASH
649.90
(843.90 - 194)
JUN 8.
TORY COMPANY
98.00
INVENTORY
98.00
(100 X 98%)
JUN 12.
ACCOUNT RECEIVABLE
1,696.00
SALES
1,600.00
SALES TAX
96.00
DATE
ACCOUNT TITLE
DEBIT
CREDIT
JUN 1.
INVENTORY
843.90
CRANE COMPANY
843.90
(870 X 97%)
JUN 3.
CRANE COMPANY
194.00
INVENTORY
194.00
(200 X 97%)
JUN 5.
INVENTORY
588.00
TORY COMPANY
588.00
(600 X 98%)
JUN 6.
CRANE COMPANY
649.90
CASH
649.90
(843.90 - 194)
JUN 8.
TORY COMPANY
98.00
INVENTORY
98.00
(100 X 98%)
JUN 12.
ACCOUNT RECEIVABLE
1,696.00
SALES
1,600.00
SALES TAX
96.00