Can someone show me how to do the calculations for: 10- paid Dawson, inc the amo
ID: 2542789 • Letter: C
Question
Can someone show me how to do the calculations for: 10- paid Dawson, inc the amount due 19- paid Dorn the amount due 25- received amount due from Colby Corporation Journal Entries for Merchandise Transactions-Perpetual System Webster Company was established on July 1. Its sales terms are 2/10, n/30. Credit terms for its purchases vary with the supplier transactions for the first month of operations are given below. Unless noted, all transactions are on account and involve mercha for resale. Webster Company uses the perpetual inventory system. July 1 Purchased goods from Dawson, Inc, $2,400; terms 1/10, n/30. 2 Purchased goods from Penn Company, $4,700; terms 2/10, n/30. 3 Paid freight on shipment from Dawson, $150. 5 Sold merchandise to Ward, Inc. $1,800 ($1,475 cost) 5 Paid freight on shipment to Ward, Inc., $110. (Hint debit Delivery Expense). 8 Returned $300 worth of the goods purchased July 1 from Dawson, Inc, because some goodt were damaged. Dewson approved the recurn. 9 Received returned goods from Ward, Inc, worth $250 ($200 cost), 10 Paid Dawson, Inc, the amount due. 10 Purchased goodá from Dorn Company with a list price of $2,900. Terms 2/10, n/30. 11 Pald freight on shipment from Dorn Company, $180, 15 Received the amount due from Ward, Inc 15 Sold merchandise to Colby Corporation, $3,700 (52.900 cost. 16 Malled a check to Penn Company for the amount due on its july 2 invoice 18 Received an allowance of $ 150 from Dorn Company for defective merchandise purchased on july 10 19 Paid Dorn Company the amount due 25 Received the amount due from Colby CorporationExplanation / Answer
Solution:
10. Paid Dawson, inc the amount due :
Goods purchased from Dawson Inc. on 01 July = $2,400, term 1/10, n/30
Goods returned to Dawson Inc. = $300
Net amount due = $2,400 - $300 = $2,100
Payment date = 10 July
Therefore payment made with in 10 days of purchase hence net payment amount = $2,100*99% = $2,079
Discount received = $2,100 - $2,079 = $21
19. Paid Dorn the amount due :
Goods purchased from Dorn on 10 July = $2,900, term 2/10, n/30
Allowance received from Dorn company for defective merchandise. = $150
Net amount due = $2,900 - $150 = $2,750
Payment date = 19 July
Therefore payment made with in 10 days of purchase hence net payment amount = $2,750*98% = $2,695
Discount received = $2,750 - $2,695 = $55
25- Received amount due from Colby Corporation:
Sold merchandise to colby corporation on 15 July = $3,700, sales terms 2/10, n/30
Payment receiving date from colby corporation = 25th July
As payment is received within 10 days hence discount of 2% will be provided to colby corporation.
Net payment to be received = $3,700 * 98% = $3,626
Discount given to colby corporation = $3,700 - $3,626 = $74