Widgets & Gadgets in a merchandiser that sells gadgets and widgets.They had the following transactions in the month of June, 2020Journalize these transactions for Widgets & GadgetsTask:Purchased gadgets and widgets from Unicorn Suppliers onaccount for 500,000 BDT. FOB Shipping Point-Shipping cost of01-Jun 5,000 paid in cash. Discount terms 1/10, n/45.Sold gadgets to Star Traders for 75,000 BDT on account. Thecost of these gadgets was 45,000 BDT. Terms 3/15, n/30, FOBDestination.02-Jun Freight of 1,500 BDT paid in cash.Returned gadgets worth 50,000 BDT to Unicorn Suppliersbecause04-Jun they were defective. Received full credit.09-Jun Paid Unicorn Suppliers in full less any applicable discounts.Sold Widgets to Dragon Traders for 80,000 in cash. Thesewidgets had a cost of 50,000 BDT. FOB Shipping Point. Freight11-Jun of 2,000 paid in cash.Star traders returned 5,000 BDT worth of gadgets on accountof being damaged. These gadgets had a cost of 2,500 and has13-Jun a residual value of 1,000. Gave them full credit in return.Received payment from Star Traders in full less any16-Jun applicable discounts.Purchased widgets from Traders International for 100,000 in20-Jun cash. FOB Destination. The freight cost of 5,000 paid in cash.Returned 15,000 BDT worth of widgets to Tradersinternational because they were the wrong product. Traders25-Jun International provided credit for the return.Monthly rent for Widgets & Gadgets store is 50,000 BDT. The30-Jun rent of June will be paid in the first week of July.

A firm is required to record all the financial transactions in the books of the firm so that they…

Answered: Widgets & Gadgets in a merchandiser…

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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Widgets & Gadgets in a merchandiser that sells gadgets and widgets.
They had the following transactions in the month of June, 2020
Journalize these transactions for Widgets & Gadgets
Task:
Purchased gadgets and widgets from Unicorn Suppliers on
account for 500,000 BDT. FOB Shipping Point-Shipping cost of
01-Jun 5,000 paid in cash. Discount terms 1/10, n/45.
Sold gadgets to Star Traders for 75,000 BDT on account. The
cost of these gadgets was 45,000 BDT. Terms 3/15, n/30, FOB
Destination.
02-Jun Freight of 1,500 BDT paid in cash.
Returned gadgets worth 50,000 BDT to Unicorn Suppliers
because
04-Jun they were defective. Received full credit.
09-Jun Paid Unicorn Suppliers in full less any applicable discounts.
Sold Widgets to Dragon Traders for 80,000 in cash. These
widgets had a cost of 50,000 BDT. FOB Shipping Point. Freight
11-Jun of 2,000 paid in cash.
Star traders returned 5,000 BDT worth of gadgets on account
of being damaged. These gadgets had a cost of 2,500 and has
13-Jun a residual value of 1,000. Gave them full credit in return.
Received payment from Star Traders in full less any
16-Jun applicable discounts.
Purchased widgets from Traders International for 100,000 in
20-Jun cash. FOB Destination. The freight cost of 5,000 paid in cash.
Returned 15,000 BDT worth of widgets to Traders
international because they were the wrong product. Traders
25-Jun International provided credit for the return.
Monthly rent for Widgets & Gadgets store is 50,000 BDT. The
30-Jun rent of June will be paid in the first week of July.

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Questtion A: why not there will be accounts recevable? "Purchased widgets from Traders International for 100,000 in 20-Jun cash. FOB Destination. The freight cost of 5,000 paid in cash" Buyer paid on be half of seller.

Question B: Please share followings:

Prepare the ledgers for revenue and expenses only
Prepare the closing journal for revenue and expenses
the trial balance

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