Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Harrison Company during November of the current year: Nov. 3. Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 20%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $34,690. The cost of the merchandise sold was $24,670. 5. Purchased merchandise on account from Papoose Creek Co., $46,100, terms FOB shipping point, 2/10, n/30, with prepaid freight of $780 added to the invoice. 6. Returned $16,000 ($20,000 list price less trade discount of 20%) of merchandise purchased on November 3 from Moonlight Co. 8. Sold merchandise on account to Quinn Co., $14,740 with terms n/15. The cost of the merchandise sold was $8,660. 13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14. Sold merchandise on VISA, $235,120. The cost of the merchandise sold was $136,990. 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., $62,600, terms 1/10, n/30. The cost of the merchandise sold was $34,960. 28. Paid VISA service fee of $3,340. 30. Paid Quinn Co. a cash refund of $1,490 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System

The following were selected from among the transactions completed by Harrison Company during November of the current year:

Nov. 3.	Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 20%, terms FOB destination, 2/10, n/30.
4.	Sold merchandise for cash, $34,690. The cost of the merchandise sold was $24,670.
5.	Purchased merchandise on account from Papoose Creek Co., $46,100, terms FOB shipping point, 2/10, n/30, with prepaid freight of $780 added to the invoice.
6.	Returned $16,000 ($20,000 list price less trade discount of 20%) of merchandise purchased on November 3 from Moonlight Co.
8.	Sold merchandise on account to Quinn Co., $14,740 with terms n/15. The cost of the merchandise sold was $8,660.
13.	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14.	Sold merchandise on VISA, $235,120. The cost of the merchandise sold was $136,990.
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., $62,600, terms 1/10, n/30. The cost of the merchandise sold was $34,960.
28.	Paid VISA service fee of $3,340.
30.	Paid Quinn Co. a cash refund of $1,490 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise.

Nov. 3
Merchandise Inventory V
62,300
Accounts Payable-Moonlight Co. V
62,300 X
Cash v
Nov. 4-sale
34,690
Sales v
34,690
Nov. 4-cost
Cost of Merchandise Sold v
24,670
Merchandise Inventory v
24,670 V
Nov. 5
Merchandise Inventory
45,958
Accounts Payable-Papoose Creek Co. V
45,958 V
Accounts Payable-Moonlight Co. V
Nov. 6
Merchandise Inventory V
Accounts Receivable-Quinn Co. V
Nov. 8-sale
Sales v
Nov. 8-cost
Cost of Merchandise Sold v
Merchandise Inventory v
I II 1I I1

Nov. 13
Accounts Payable-Moonlight Co. V
Cash v
Cash v
Nov. 14-sale
Sales v
Nov. 14-cost Cost of Merchandise Sold v
Merchandise Inventory v
Nov. 15
Accounts Payable-Papoose Creek Co. V
Cash v
Nov. 23
Cash v
Accounts Receivable-Quinn Co. V
Nov. 24-sale Accounts Receivable-Rabel Co. V
Sales
Nov. 24-cost Cost of Merchandise Sold
Merchandise Inventory v
I0 II II II II II II

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