Chapter 5, Problem P5.35APGA

Journalizing purchase and sale transaction

Learning Objective 2, 3

Joumalize the following transactions that occurred in November 2018 for Julie’s Fun World. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Julie’s Fun World estimates sales returns at the end of each month.

Sep. 4	Purchased merchandise inventory on account from Vera Company, $5,000. Terms 3/10, n/EOM, FOB shipping point.
6	Paid freight bill of $100 on November 4 Purchase.
8	Returned half the inventory purchased on November 4 from Vera Company.
10	Sold merchandise inventory for cash, $1,100. Cost of goods, $400. FOB destination.
11	Sold merchandise inventory to Geary Corporation, $11,100, on account, terms of 2/10, n/EOM. Cost of goods, $6,105. FOB shipping point.
12	Paid freight bill of $20 on November 10 sale.
13	Sold merchandise inventory to Caldwell Company, $9,500, on account, terms of n/45. Cost of goods, $5,225. FOB shipping point.
14	Paid the amount owed on account from November 4, less return and discount.
17	Received defective inventory as a sales return from the November 13 sale, $500. Cost of goods, $275.
18	Purchased inventory of $3,600 on account from Rainman Corporation. Payment terms were 2/10, n/30, FOB destination.
20	Received cash from Geary Corporation, less discount,
26	Paid amount owed on account from November 18, less discount.
28	Received cash from Caldwel Company, less return.
29	Purchased inventory from Sandra Corporation for cash, $12,300. FOB shipping point. Freight in paid to shipping company, $170.