Question 1: Record in journal form each of the following transactions, assuming the perpetual inventory system is used:
August 2 – Purchased merchandise on credit from Bean Company, invoice dated August 1, terms n/10, FOB shipping point $2,300.
3 – Received bill from Ace Shipping Company for transportation costs on August 2 shipment, invoice dated August 1, terms n/30, $210.
7 – Returned damaged merchandise received from Bean Company on August 2 for credit, $360.
10 – Paid in full amount due to Bean Company for the purchase of August 2, part of which was returned on August 7.
Question 2: Record in journal form the following transactions, assuming the perpetual inventory system is used:
August 4 – Sold merchandise on credit to Konner Company, terms, n/30, FOB destination, $1,200. (Cost = $720)
5 - Paid transportation costs for sale of August 4, $110.
9 – Part of the merchandise sold August 4 was accepted back from Konner Company for full credit and returned to the merchandise inventory, $350. (Cost = $ 210)
September 3 – Received payment in full from Konner Company for merchandise sold on August 4, less the return on August 9.
Question 3: Record in journal form the transactions in SE 5, assuming the periodic inventory system is used:
Question 4: Using the following data and assuming cost of goods sold is $230,000, prepare the cost of goods sold section of a merchandising income statement (periodic inventory system), including computation of the amount of purchases for the month of October:
Freight in $ 12,000
Merchandise inventory, Sept. 30, 20xx 33,000
Merchandise inventory, Oct. 30, 20xx 44,000
Purchases ?
Purchases returns and allowances 9,000
Question 5: Record in journal form the transactions in SE 6, assuming the periodic inventory system.
Question 6: Forrester Company had beginning merchandise inventory of $ 14,800 and ending merchandise inventory of $ 19,200. Where would these numbers appear on the worksheet and in the closing entries under (1) the perpetual inventory system and (2) the periodic inventory system?
Question 7: On April 15, Farid Company sold merchandise to Smarte Company for $1,500 on terms of 2/10, n/30. Record the entries in both Farids and Smarte’s records for (1) the sale, (2) a return of merchandise on April 20, of $300, and (3) payment in full on April 25. Assume both companies use the periodic inventory system.