P5-1A (Page 207)
Instructions: Journalize the transactions for the month of July for O’Quinn using a perpetual inventory system.
O'Quinn Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June,
O'Quinn's inventory consisted of suitcases costing $1,200. During the month of July the following merchandising transactions
occurred.
3
9
12
17
18
20
21
22
30
31
Date
July
1
3
3
9
12
17
17
18
18
20
21
22
22
30
31
Purchased suitcases on account for $1,800 from Emerson Manufacturers, FOB destination, terms 2/10, n/30. The
appropriate party also made a cash payment of $100 for freight on this date.
Sold suitcases on account to Straume Satchels for $2,000. The cost of suitcases sold is $1,200.
Paid Emerson Manufacturers in full.
Received payment in full from Straume Satchels.
Sold suitcases on account to The Going Concern for $1,800. The cost of the suitcases sold was $1,080.
Purchased suitcases on account for $1,900 from Hume Manufacturers, FOB shipping point, terms 1/10, n/30. The
appropriate party also made a cash payment of $125 for freight on this date.
Received $300 credit (including freight) for suitcases returned to Hume Manufacturers.
Received payment in full from The Going Concern.
Sold suitcases on account to Desmond's for $2,250. The cost of suitcases sold was $1,350.
Paid Hume Manufacturers in full.
Granted Desmond's $200 credit for suitcases returned costing $120.
Account Titles
Dr. Merchandise Inventory
Cr. Accounts Payable
Debit
$1,800
Credit
$1,800
Dr. Cost of Goods Sold
Cr. Merchandise Inventory
$1,200
Dr. Accounts Receivable
Cr. Sales
$2,000
Dr. Accounts Payable
Cr. Merchandise Inventory
($1,800 x 2%)
Cr. Cash
$1,800
Dr. Sales Discount
($2,000 x 1%)
Dr. Cash
Cr. Accounts Receivable
$36
$20
$1,980
$2,000
Dr. Accounts Receivable
Cr. Sales
$1,800
Dr. Merchandise Inventory
Cr. Accounts Payable
$1,900
Dr. Merchandise Inventory
Cr. Cash
$125
Dr. Accounts Payable
Cr. Merchandise Inventory
$300
Dr. Sales Discount
($1,800x 1%)
Dr. Cash
Cr. Accounts Receivable
$18
Sales
$1,800
$1,900
$125
Freight-in
$300
Purchase
Return &
Allowances
$1,782
Sales
Discount
$1,800
$1,350
Dr. Accounts Receivable
Cr. Sales
$2,250
Dr. Accounts Payable
($1,900 - $800)
Cr. Cash
$1,600
https://www.coursehero.com/file/62164238/P5-1Adocx/
Sales
Discount
$1,080
Dr. Cost of Goods Sold
Cr. Merchandise Inventory
Cr. Accounts Receivable
Purchase
Discount
$1,764
$1,080
31 was
Dr. downloaded
Sales Return
and Allowances
This study source
by 100000828089659
from CourseHero.com on 07-24-2021 01:30:14 GMT -05:00
Sales
$2,000
Dr. Cost of Goods Sold
Cr. Merchandise Inventory
Dr. Merchandise Inventory
Cr. Cost of Goods Sold
Purchase
$1,200
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1
Th
July
$1,350
Sales
$2,250
$1,600
Without
Purchase
Discount
$120
$120
$200
$200
Sales Return &
Allowances
P5-7A (Page 210)
Instructions: Journalize the April transactions using a periodic inventory system.
At the beginning of the current season, the ledger of Alpert Tennis Shop showed Cash $2,500; Inventory $1,700; and Owner’s
Capital $4,200. The following transactions were completed during April.
Date
April
4
6
8
10
11
13
14
15
17
18
20
21
27
30
Purchased racquets and balls from Nestor Co. $740, terms 3/10, n/30.
Paid freight on Nestor Co. purchase $60.
Sold merchandise to members $900, terms n/30.
Received credit of $40 from Nestor Co., for a racquet that was returned.
Purchased tennis shoes from Carbonell Sports for cash $300.
Paid Nestor Co. in full.
Purchased tennis shirts and shorts from Faraday Sportswear $700, terms 2/10, n/60.
Received cash refund of $50 from Carbonell Sports for damaged merchandise that was returned.
Paid freight on Faraday Sportswear purchase $30.
Sold merchandise to members $1,000, terms n/30.
Received $500 in cash from members in settlement of their accounts.
Paid Faraday Sportswear in full.
Granted an allowance of $25 to members for tennis clothing that did not fit properly.
Received cash payments on account from members $550.
Account Titles
Dr. Purchases
Cr. Accounts Payable
Credit
$740
Dr. Freight-In
Cr. Cash
$60
Dr. Accounts Receivable
Cr. Sales
$900
Dr. Accounts Payable
Cr. Purchase Return and Allowances
$40
Dr. Purchases
Cr. Cash
$300
Dr. Accounts Payable
($740 - $40)
Cr. Purchase Discount
($700 x 3%)
$700
Dr. Purchases
Cr. Accounts Payable
$700
Dr. Cash
Cr. Purchase Return and Allowances
$50
Dr. Freight-In
Cr. Cash
$30
Dr. Accounts Receivable
Cr. Sales
$60
$900
$40
$300
$700
$700
$50
$30
$1,000
$1,000
Dr. Cash
Cr. Accounts Receivable
$500
Dr. Accounts Payable
Cr. Purchase Discount
($700 x 2%)
Cr. Cash
$700
Dr. Sales Return and Allowances
Cr. Accounts Receivable
$25
Dr. Cash
Cr. Accounts Receivable
$550
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Debit
$740
sh is
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4
6
8
10
11
13
14
15
17
18
20
21
27
30
Th
April
$500
$14
$686
$25
$550