COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 8, Problem 1.6SRA
To determine
Prepare the entry to be made for recording the purchase transaction including freight charges.
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Record the following sales transactions in general journal form on the books of Collins Company (the seller).
a.
Sold merchandise on account to Gallagher Company, invoice No. 1501, $2,000; terms 1/10, n/30.
b.
Issued credit memo No. 125 to Gallagher Company for damaged merchandise, $250.
c.
Gallagher Company paid the account in full within the discount period.
If an amount box does not require an entry, leave it blank. If required, round your answers to the nearest cent.
Star Company uses a purchases journal to record all purchases on account, including merchandise purchases. The company purchases merchandise and office supplies on a frequent basis. On November 12, Star Company purchased merchandise on account from Moon Company for $6,500, terms 2/10, n/30. How would this transaction be recorded in the purchases journal of Star Company?
On January 12th, Gates Gems returned merchandise they received on account from Gem Warehouse in the
amount of $800. What is the journal entry to record this transaction?
Debit Accounts Payable/Gem Warehouse, $800; credit Purchases Returns and Allowances,
$800
Debit Accounts Receivable/Gem Warehouse, $800; credit Purchases, $800
Debit Purchases, $800; credit Accounts Payable/Gem Warehouse, $800
Debit Accounts Receivable/Gem Warehouse, $800; credit Purchases Returns and Allowances
$800
Chapter 8 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 8 - What is the name of the account used to record...Ch. 8 - What does FOB shipping point mean?Ch. 8 - Prob. 1.3SRQCh. 8 - Prob. 1.4SRECh. 8 - Prob. 1.5SRECh. 8 - Prob. 1.6SRACh. 8 - Prob. 2.1SRQCh. 8 - Prob. 2.2SRQCh. 8 - The total of the schedule of accounts payable...Ch. 8 - In the accounts payable ledger, a suppliers...
Ch. 8 - Prob. 2.5SRECh. 8 - Prob. 2.6SRACh. 8 - What is the name of the account used to record...Ch. 8 - What type of account is Purchases Returns and...Ch. 8 - Prob. 3CSRCh. 8 - Prob. 4CSRCh. 8 - Prob. 5CSRCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - What type of accounts are kept in the accounts...Ch. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Why is using the Purchases Returns and Allowances...Ch. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Identify the normal balance of the following...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Record the following transactions of J. Min...Ch. 8 - Record the following transactions of Allen Inc.:Ch. 8 - Bushard Company (buyer) and Schmidt, Inc. (seller)...Ch. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Record the following transactions of Fashion Park...Ch. 8 - On April 1, Moloney Meat Distributors sold...Ch. 8 - Bushard Company (buyer) and Schmidt, Inc. (seller)...Ch. 8 - Annettes Photo Shop is a retail store that sells...Ch. 8 - Prob. 2PACh. 8 - Prob. 3PACh. 8 - NewTech Medical Devices is a medical devices...Ch. 8 - Prob. 5PACh. 8 - Bowden Company (buyer) and Song, Inc. (seller),...Ch. 8 - The following transactions took place at Fine...Ch. 8 - Prob. 1PBCh. 8 - Taras Card and Novelty Shop is a retail card,...Ch. 8 - Prob. 3PBCh. 8 - Prob. 4PBCh. 8 - Prob. 5PBCh. 8 - Belladonna Company (buyer) and Sachi, Inc....Ch. 8 - The following transactions took place at The...Ch. 8 - William Evans began Evans Distributors, a sporting...Ch. 8 - Prob. 2CTPCh. 8 - Prob. 1MFCh. 8 - Prob. 2MFCh. 8 - Prob. 3MFCh. 8 - Prob. 4MFCh. 8 - Prob. 5MFCh. 8 - Prob. 6MFCh. 8 - Prob. 1ED
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- You returned damaged goods to C.C. Rogers Inc. and received a credit memo for $250. Which journal(s) would the company use to record this transaction? A. sales journal only B. purchases journal and the accounts payable subsidiary ledger C. cash receipts journal and the accounts receivable subsidiary ledger D. cash disbursements journal and the accounts payable subsidiary ledger E. general journal and the accounts payable subsidiary ledgerarrow_forwardNieman Company purchased merchandise on account from Springhill Company for $12,100, terms 2/10, n/30. Nieman returned merchandise with an invoice amount of $2,800 and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is debited by Nieman Company to record the return?arrow_forwardOn February 28th, Gates Gems received merchandise they purchased on account from Diamonds Direct in the amount of $8,550. Some of the gems were delivered were different than what was ordered. Gates Gems decided they would keep the Gems if Diamonds Direct would give them a discount. Diamonds Direct offered a $1,500 discount and Gates Gems accepted. What is the journal entry to record this transaction? Debit Accounts Payable/Diamonds Direct, $1,500; credit Purchases Returns and Allowances $1,500 Debit Purchases, $8,550; credit Accounts Payable/Diamonds Direct, $8,550 Debit Purchases, $1,500; credit Accounts Payable/Diamonds Direct, $1,500 Debit Accounts Payable/Jewelry Wholesalers, $8,550; credit Purchases Returns and Allowances, $8,550arrow_forward
- Sandra’s Store purchased merchandise from a manufacturer with an invoice price of$11,000 and credit terms of 3/10, n/60, and paid within the discount period.Requireda. Prepare the journal entries that the purchaser should record for the purchase andpayment.b. Prepare the journal entries that the seller should record for the sale and collection.c. Assume that the buyer borrowed enough cash to pay the balance on the last day ofthe discount period at an annual interest rate of 8% and paid it back on the last dayof the credit period. Calculate how much the buyer saved by following this strategy.(Use a 365-day year.)arrow_forwardStylon Co., a women's clothing store, purchased $18,000 of merchandise from a supplier on account, terms FOB destination, 1/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $2,900, receiving a credit memo. a. Journalize Stylon’s entry to record the purchase. If an amount box does not require an entry, leave it blank. b. Journalize Stylon’s entry to record the merchandise return. If an amount box does not require an entry, leave it blank. c. Journalize Stylon’s entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank. d. Journalize Stylon’s entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank.arrow_forwardBarans Company purchased merchandise on account from Springhill Company for $10,600, terms 2/10, n/30. Barans returned merchandise with an invoice amount of $2,200 and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is debited by Barans Company to record the return?arrow_forward
- Journalize the entries to record the following selected transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Mar. 1 Sold $63,300 of merchandise on account, subject to a sales tax of 6%. The cost of the merchandise sold was $37,540. 23 Paid $38,530 to the state sales tax department for taxes collected.arrow_forwardBoss Sporting Goods, a retail sportswear company, purchased merchandise of $500 on account from Awesome Sweats, a supplier. Awesome Sweats prepaid freight charges of $50 and added them to the invoice. The journal entry to record the purchase is:arrow_forwardThe following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers. Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300. 3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000. 4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200. 5 Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards,…arrow_forward
- The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers. Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300. 3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000. 4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200. 5 Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods sold was $19,400. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards,…arrow_forwardStylon Co., a women's clothing store, purchased $21,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $3,200, receiving a credit memo. a. Journalize Stylon's entry to record the purchase. If an amount box does not require an entry, leave it blank. Inventory v Accounts Payable v X Feedback b. Journalize Stylon's entry to record the merchandise return. If an amount box does not require an entry, leave it blank. Accounts Payable Inventory v Feedback c. Journalize Stylon's entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank. 88 Accounts Payable Cash v Feedback d. Journalize Stylon's entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank. Accounts Payable varrow_forwardIt is a document received by the business when they purchase a stationery items of OMR 5 and paying cash to the seller: a. Credit note b. Credit invoice c. Receipt d. Debit note Ms. Ameena makes the following journal entry in her business: Debit Accounts receivable Credit Sales Which of the following transaction is Correct for the above journal entry? a. Purchased Merchandise inventory under the credit terms of 2/10, n/30 b. Sold Merchandise inventory under the credit terms of 3/10,n/60 c. Paid Cash to Suppliers d. Returned Merchandise inventory to Supplier Which of the following asset will be called as Non-Current Asset of a Merchandise business? a. Accounts receivable b. Machinery c. Cash at Bank Muscat d. Unsold stocks Mr. Rasool bought Merchandise inventory worth OMR 25,000 for cash. Which books of prime entry will record the transaction? a. Sales journal b. Purchase journal c. Cash disbursement journal d. General journalarrow_forward
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