On May 11, 2023, Wilson Purchasing purchased $30,000 of merchandise from Happy Sales; terms 1/10,n/90, FOB Happy Sales. The cost of the goods to Happy was $25,000. Wilson paid $2,000 to ExpressShipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned$5,000 of goods to Happy Sales, which restored them to inventory. The returned goods had costHappy $4,200. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happyreceived and recorded the cheque on May 21.Required:a. Present the journal entries that Wilson Purchasing should record for these transactions. Assume thatWilson uses a perpetual inventory system.View transaction list1 Record the purchase of merchandise on credit; terms1/10, n/90.2 Record the payment of shipping charges on purchasedmerchandise.3 Record the return of unacceptable merchandise.4 Record the payment of balance within the discountperiod.b. Present the journal entries that Happy Sales should record for these truses a perpetual inventory system.View transaction listRecord sale of merchandise on account; 1/10, n/90.Record cost of sale.3 Record the entry for accepting a return from a customer.4 Record the cost of returned goods.5 Record the entry for receipt of balance within thediscount period.Note :X= journal entry has been enteredNet savingsXAnalysis Component:Assume that the buyer, Wilson Purchasing, borrowed enough cash to pay the balance on the last day ofthe discount period at an annual interest rate of 4% and paid it back on the last day of the credit period.Calculate how much the buyer saved by following this strategy. (Use a 365-day year. Roundintermediate calculations and final answer to 2 decimal places.)

Rules for EntriesPersonal Account: Related to Person or Firm.Receiver will be debited and Giver will…

n/90, FOB Happy Sales. The cost of the goods to Happy was $25,000. Wilson paid $2,000 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $5,000 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $4,200. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happ received and recorded the cheque on May 21.

n/90, FOB Happy Sales. The cost of the goods to Happy was $25,000. Wilson paid $2,000 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $5,000 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $4,200. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happ received and recorded the cheque on May 21.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On May 11, 2023, Wilson Purchasing purchased $30,000 of merchandise from Hostel Sales, terms 3/10, n/90, FOB Hostel Sales. The cost of the goods to Hostel was $20,000. Wilson issued cheque #84 in the amount of $335 to pay Express Shipping Service for the delivery charges on the merchandise on May 11 On May 12, Wilson returned $1,200 of goods to Hostel Sales, which restored them to inventory. The returned goods had cost Hostel $800. On May 20, Wilson mailed cheque #85 to Hostel for the amount owed on that date. Hostel received and recorded the cheque on May 21 Required: 1. Record the transactions for Wilson Purchasing in a Purchases Journal, Cash Payments Journal, and General Journal as appropriate assuming a periodic inventory system. (Enter the transactions in the order provided in the question.) Date May 11 Date May 11 May 20 Account Credited Hostel Sales Ch. No. 84 85 Date of Invoice May 11 Payee Express Shipping Service Hostel Sales WILSON PURCHASING Purchases Journal Terms 3/10,…
On May 11, 2023, Wilson Purchasing purchased $24,000 of merchandise from Happy Sales; terms 3/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $19,000. Wilson paid $1,400 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $3,800 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $3,000. On May 20, Wilson mailed a cheque to Happy for the amount
On May 11, 2022, Babolat Purchasing purchased $23,000 of merchandise from Polystring Pro; terms 2/10, n/90, FOB Shipping point. The cost of the goods to Polystring was $16,000. Babolat paid $1,300 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Babolat returned $3,500 of goods to Polystring Pro, which restored them to inventory. On May 15, Babolat sent its payment to Polystring. Present the journal entries that Babolat Purchasing should record for these transaction
On June 3, 2020, Nash Company sold to Ann Mount merchandise having a sales price of $7,200 (cost $4,320) with terms of n/60, f.o.b. shipping point. Nash estimates that merchandise with a sales value of $720 will be returned. An invoice totaling $140 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Nash $300 of merchandise containing flaws. Nash estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $23, paid by Nash on June 8. On July 16, the company received a check for the balance due from Mount.Prepare journal entries for Nash Company to record all the events in June and July. The journal entries required are: To record sales To record cost of goods sold To record sales returns To record cost of goods returned To record the freight cost
On July 2, 2015, Lake Company sold to Sue Black merchandise having a sales price of $6,000 (cost $3,600) with terms of 2/10, n/30, f.o.b. shipping point. Lake estimates that merchandise with a sales value of $600 will be returned. An invoice totaling $120, terms n/30, was received by Black on July 6 from Pacific Delivery Service for the freight cost. Upon receipt of the goods, on July 3, Black notified Lake that $250 of merchandise contained flaws. The same day, Lake issued a credit memo covering the defective merchandise and asked that it be returned at Lake’s expense. Lake estimates the returned items to have a fair value of $100. The freight on the returned merchandise was $20 paid by Lake on July 7. On July 12, the company received a check for the balance due from Black. Questions: (a) Prepare journal entries for Lake Company to record all the events noted above assuming sales and receivables are entered at gross selling price. (b) Prepare the journal entry assuming that Sue…
On June 3, 2020, Hunt Company sold to Ann Mount merchandise having a sales price of $8,000 (cost $6,000) with terms of n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of $800 will be returned. An invoice totaling $120 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Hunt $300 of merchandise containing flaws. Hunt estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $24, paid by Hunt on June 8. On July 16, the company received a check for the balance due from Mount.
On June 3, 2020, Hunt Company sold to Ann Mount merchandise having a sales price of $8,000 (cost $6,000) with terms of n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of $800 will be returned. An invoice totaling $120 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Hunt $300 of merchandise containing flaws. Hunt estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $24, paid by Hunt on June 8. On July 16, the company received a check for the balance due from Mount. Instructions Prepare journal entries for Hunt Company to record all the events in June and July.
On July 2, 2021, Windsor Company sold to Sue Black merchandise having a sales price of $11,100 (cost $6,660) with terms of 2/10. n/30. f.o.b. shipping point. Windsor estimates that merchandise with a sales value of $810 will be returned. An invoice totaling $130, terms n/30, was received by Black on July 6 from Pacific Delivery Service for the freight cost. Upon receipt of the goods, on July 3, Black notified Windsor that $400 of merchandise contained flaws. The same day, Windsor issued a credit memo covering the defective merchandise and asked that it be returned at Windsor’s expense. Windsor estimates the returned items to have a fair value of $150. The freight on the returned merchandise was $20 paid by Windsor on July 7. On July 12, the company received a check for the balance due from Black. Prepare journal entries for Windsor Company to record all the events noted above assuming sales and receivables are entered at gross selling price. (Credit account titles are…
Bell Corporation sold merchandise on account with a list price of $18,000 and a cost of $10,000. Payment terms were 1/10, n/30. Bell shipped the goods FOB destination and paid $600 in freight costs. Prior to payment of the invoice, the customer returned merchandise with a list price of $1,800 and a $1,000 cost. The customer paid the amount due within the discount period. What is Bell Corporation's net sales amount as a result of these transactions?
The Wilson Company purchased $26,000 of merchandise from the Poole Wholesale Company. Wilson also paid $1,900 for freight costs to have the goods shipped to its location. Which of the following statements regarding the necessary entries for the transactions is true? Wilson uses the perpetual inventory system. Multiple Choice Total increases to the inventory account would be $26,000. Total increases to the inventory account would be $1,900. Transportation-in would be increased by $1,900. Total increases to the inventory account would be $27,900.
On June 10, Pharoah Company purchased $8,500 of merchandise on account from Flounder Company, FOB shipping point, terms 2/10, n/30. Pharoah pays the freight costs of $520 on June 11. Damaged goods totaling $500 are returned to Flounder for credit on June 12. The fair value of these goods is $70. On June 19, Pharoah pays Flounder Company in full, less the purchase discount. Both companies use a perpetual inventory system. (a) Your answer is partially correct. Prepare separate entries for each transaction on the books of Pharoah Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit June 10 v Inventory 8,500 Accounts Payable 8,500 June 11 v Inventory 520 Cash 520 June 12 v Accounts Payable 500 Inventory 500 June 19 v Accounts Payable Inventory Cash MacBook Pro
On November 1, 2025, Alpha Omega, Inc. sold merchandise for $19,000, FOB destination, with payment terms, n/30. The cost of goods sold was $5,700. On November 3, the customer returns on 3 this sale amounted $7,600 of goods purchased. The company received the balance on November 9, 2025. Calculate the cost of goods sold from these transactions.