CHAPTER 4 Merchondise Tronsoctions The tollowing transactions were completed dur
ID: 2577099 • Letter: C
Question
CHAPTER 4 Merchondise Tronsoctions The tollowing transactions were completed during January S January P eurchased riding equipment on account from the manufacturer, TL. 3.200, FOB shipping point, terms 2/10, n/30. Paid freight amount of TI 150 on January 5 purchase. Returned part of merchandise to the manufacturer, and received credit, TL 2 Sold merchandise on account to customers TL 1.800, terms n/30. Cost of 10 merchandise was TL 1.130. 12 Purchased riding boots, and other outfit on account from Sporto Sportswear, 1 1.320, terns 1/10, n/30. Paid the manufacturer of January 5 purchase in full. 14 17 20 Returned some merchandise to Sporto Sportswear, TL. 120. Sold merchandise on account, TL 1.400, terms n/30. Cost of merchandise was TL. 1.050. 21 Paid Sporto Sportswear in full. customer returned some merchandise, TL 60. Cost of merchandise was TL 40 Sold merchandise for cash, TL 1.200. Cost of merchandise was TL 1.000. Customers paid TL 2.200. 30 30 Required: Assuming perpetual inventory systern: 1. Journalize, and post the transactions. 2. Prepare a trial balance on January 31. 3. Prepare the income statement through gross matgin parr the cloring entries. P 4-4 (Appendix 4) Journalize the following transactions under the periodic Inventory system tember Purchased merchandise on credit from Tiger Company, terms n/15 FOB shipping point, TL 1.850. 4Septmber Receved and poud tne oic so the shipment of the merchandise purchased on 1 s September Returned the outdated merchandise that was purchased on 1 September for cr 12 September Paid for the purchase made on 1 September 15 September Sold merchandise on credit to Ringo Company, amounting to TL 2.475. The sales terms September, amounting to TL 150. edit, TL 650. were FOB destination, and paid TL 125 for shipping charges. P 4-5 Journalize the transactions in problem 4-4 above using the perpetual inventory the merchandise sold on 15 September cost TL 1.420.Explanation / Answer
01-Sep Purchases 1850 Accounts payable 1850 04-Sep Freight expense 150 Cash 150 05-Sep Accounts payable 650 Purchase return 650 12-Sep Accounts paybale 1200 Cash 1200 15-Sep Accounts receivable 2475 Sales revenue 2475