Instructions: Journalize the transactions below (credit and debit) Purchased mer
ID: 2578208 • Letter: I
Question
Instructions: Journalize the transactions below (credit and debit)
Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount
Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers.
Freight terms in which the seller pays the transportation costs from the shipping point to the final destination.
The cost that is reported as an expense when merchandise is sold.
Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination.
The bill that the seller sends to the buyer.
Nov. 3Instructions: Journalize the transactions below (credit and debit)
Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount
Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers.
25%, terms FOB destinationFreight terms in which the seller pays the transportation costs from the shipping point to the final destination.
, 2/10, n/30. 4 Sold merchandise for cash, $36,900. The cost of the goods soldThe cost that is reported as an expense when merchandise is sold.
was $20,480. 5 Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping pointFreight terms in which the buyer pays the transportation costs from the shipping point to the final destination.
, 2/10, n/30, with prepaid freight of $750 added to the invoiceThe bill that the seller sends to the buyer.
. 6 Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. 8 Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise on VISA, $239,110. The cost of the goods sold was $137,270. 15 Paid Papoose Creek Co. on account for purchase of November 5. 23 Received cash on account from sale of November 8 to Quinn Co. 24 Sold merchandise on account to Rabel Co., $57,100, terms 1/10, n/30. The cost of the goods sold was $32,270. 28 Paid VISA service fee of $3,700. 30 Paid Quinn Co. a cash refund of $5,960 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,290.Explanation / Answer
In the books Journal Dr Cr Date Particulars L.F. Amount($) Amount($) 3-Nov Merchandise Inventory $67,500 To Accounts Payable-moonlight company $67,500 ( Being the amount of purchases net of trade discount ( 90,000 x 75% ) 4-Nov Cash A/c 36,900 To sales A/c 36,900 ( Being the amount of sales made in cash) 4-Nov Cost of Merchandise Sold 20,480 To Merchandise Inventory A/c 20,480 ( Being cost of merchandise inventory sold ) 5-Nov Merchandise Inventory 51450 To Accounts Payable-papoose creek co 51450 ( Being amount of purchase inclusive of pre-paid freight) 6-Nov Accounts Payable-Moonlight Co $12,750 To Merchandise Inventory $12,750 8-Nov Accounts Receivable- Quinn Co $14,550 To Sales $14,550 8-Nov Cost of Merchandise Sold $9,510 To Merchandise Inventory $9,510 13-Nov Accounts Payable-Moonlight Co $54,750 To Cash $53,655 To Merchandise Inventory(2% discount on payment) $1,095 14-Nov Cash $239,110 To Sales $239,110 14-Nov Cost of Merchandise Sold $137,270 To Merchandise Inventory $137,270 15-Nov Accounts Payable-Papoose Creek Co $51,450 To Cash $50,436 To Merchandise Inventory(2% disc on $50700) $1,014 23-Nov Cash $14,550 To Accounts Receivable-Quinn Co $14,550 24-Nov Accounts Receivable-Rabel Co $57,100 To Sales $57,100 24-Nov Cost of Merchandise Sold $32,270 To Merchandise Inventory $32,270 28-Nov Credit Card Expense $3,700 To Cash $3,700 30-Nov Sales Returns and Allowances $5,960 To Accounts Receivable-Quinn Co $5,960 30-Nov Merchandise Inventory $3,290 To Cost of Merchandise Sold $3,290