Supplemental Instruction Handouts
Financial Accounting
Chapter 5: Accounting for Merchandising Activities
Activities: Perpetual Journal Entries
Required:
Prepare general journal entries to record the following perpetual merchandising transactions of
Carmen’s Antique Shop. Use a separate account for each receivable and payable.
June 1st purchased merchandise from Dave’s Wholesalers for $2,500 under credit terms of 2/10,
n/30, and FOB shipping point.
Date
June 1
General Journal
Account Titles and Explanations
Inventory
Accounts Payable – Dave’s Wholesalers
PR
Debit
2,500
Page ____
Credit
2,500
June 2nd received the merchandise and a bill for shipping of $150 from Ron’s Shipping Company.
The bill was paid when received.
Date
June 2
General Journal
Account Titles and Explanations
Inventory
Cash
PR
Debit
150
Page ____
Credit
150
June 3rd sold $500 worth of antiques for cash. The cost of the antiques was $300.
Date
June 3
June 3
General Journal
Account Titles and Explanations
Cash
Sales
Cost of Goods Sold
Inventory
PR
Debit
500
Page ____
Credit
500
300
Academic Success Centre
www.rrc.mb.ca/asc
This answer key was created by Michael Reimer for the Academic Success Centre.
For more questions or links to the Wise Guys videos check out blogs.rrc.ca/michael
300
June 5th sold $750 worth of antiques on credit to Mrs. Burns with credit terms of 3/10, n/30 FOB
destination. The antiques cost $400.
Date
June 5
June 5
General Journal
Account Titles and Explanations
Accounts Receivable – Mrs. Burns
Sales
PR
Debit
750
Page ____
Credit
750
Cost of Goods Sold
Inventory
400
400
June 6th paid $100 for the delivery of antiques to Mrs. Burns.
Date
June 6
General Journal
Account Titles and Explanations
Delivery Expense
Cash
PR
Debit
100
Page ____
Credit
100
June 6th received a $500 credit memo from Dave’s Wholesalers for a return of unsatisfactory
antiques.
Date
June 6
General Journal
Account Titles and Explanations
Accounts Payable – Dave’s Wholesalers
Inventory
PR
Debit
500
Page ____
Credit
500
June 10th purchased merchandise from Angie’s Antique Dealers for $1,750 with credit terms of
1/10, n/20, and FOB destination.
Date
June 10
General Journal
Account Titles and Explanations
Inventory
Accounts Payable – Angie’s Antique Dealers
PR
Debit
1,750
Page ____
Credit
Academic Success Centre
www.rrc.mb.ca/asc
This answer key was created by Michael Reimer for the Academic Success Centre.
For more questions or links to the Wise Guys videos check out blogs.rrc.ca/michael
1,750
June 11th made a payment to Dave Wholesalers less the return and applicable discount.
Date
June 11
General Journal
Account Titles and Explanations
Accounts Payable – Dave’s Wholesalers (2,500 – 500)
Inventory (2,000 x 0.02)
Cash (2,000 – 40)
PR
Debit
2,000
Page ____
Credit
40
1,960
June 12th made a sale to Mr. Ireland for $600 with credit terms of 3/10, n/30 FOB shipping point.
The antiques cost $350.
Date
June 12
June 12
General Journal
Account Titles and Explanations
Accounts Receivable – Mr. Ireland
Sales
PR
Debit
600
Page ____
Credit
600
Cost of Goods Sold
Inventory
350
350
June 15th received payment from Mrs. Burns regarding the June 5th sale.
Date
June 15
General Journal
Account Titles and Explanations
Cash (750 – 22.50)
Sales Discount (750 x 0.03)
Accounts Receivable – Mrs. Burns
PR
Debit
727.50
22.50
Page ____
Credit
750
June 16th after negotiations with Angie’s Antique Dealers we received an allowance of $450 for
merchandise that had some problems with it upon arrival to our store.
Date
June 16
General Journal
Account Titles and Explanations
Accounts Payable – Angie’s Antique Dealers
Inventory
PR
Debit
450
Page ____
Credit
Academic Success Centre
www.rrc.mb.ca/asc
This answer key was created by Michael Reimer for the Academic Success Centre.
For more questions or links to the Wise Guys videos check out blogs.rrc.ca/michael
450
June 18th issued a credit memo for $200 to Mr. Ireland for return of unsatisfactory antiques.
The antiques were destroyed beyond repair and were thrown out.
Date
June 18
General Journal
Account Titles and Explanations
Sales Returns and Allowances
Accounts Receivable – Mr. Ireland
PR
Debit
200
Page ____
Credit
200
June 22nd received payment from Mr. Ireland regarding the June 12th sale.
Date
June 22
General Journal
Account Titles and Explanations
Cash (400 – 12)
Sales Discounts (400 x 0.03)
Accounts Receivable – Mr. Ireland (600 – 200)
PR
Debit
388
12
Page ____
Credit
400
June 30th made a payment to Angie’s Antique Dealers less the allowance.
Date
June 30
General Journal
Account Titles and Explanations
Accounts Payable – Angie’s Antique Dealers
Cash
(1750 – 450)
PR
Debit
1,300
Page ____
Credit
Academic Success Centre
www.rrc.mb.ca/asc
This answer key was created by Michael Reimer for the Academic Success Centre.
For more questions or links to the Wise Guys videos check out blogs.rrc.ca/michael
1,300