Lawrence Appliances had the following purchase transactions. Journalize all necessary transactions using the periodic inventory system. Explanations are not required.
Sep. 4 Purchased inventory of $6,900 on account from Max Appliance Wholesale, an appliance wholesaler. Terms were 3/15, n/30, FOB shipping point.
4 Paid freight charges, $480.
10 Returned $300 of inventory to Max.
17 Paid Max Appliance Wholesale, less return, and discount.
20 Purchased inventory of $3,900 from MY Appliance, an appliance wholesaler. Terms were 1/10, n/45, FOB destination.
22 Received a $400 allowance from MY Appliance for damaged but usable goods.
29 Paid MY Appliance, less allowance and discount.
The total of debits and credits is $22,080.
In cost accounting, raw material denotes the goods required to be processed before selling them to the consumers. Raw materials pass through the production process and appear as finished goods.
Accounts and Explanation
Accounts payable (6900-300)
Purchase discount (6600*3%)
Accounts payable (3900-400)
Purchase discount (3500*1%)
Click Computers has the following transactions in July related to the sale of merchandise inventory.
July 12 Sold computers on account for $8,000 to a customer, terms 3/15, n/30. The cost of the computers is $4,800. Click uses the gross method for recording sales revenue.
26 Received payment from the customer on balance due.
Journalize the sales transactions for Click Computers assuming the company uses the perpetual inventory system.
Journalize the following sales transactions for Sierra Tractors. Explanations are not required.
June 5 Sierra sold $20,000 of inventory on account, credit terms are 4/10, n/30. Cost of goods is $10,000. Sierra uses the gross method to record sales revenue.
12 Sierra receives payment from the customer on the amount due, less the discount.
Journalize the following transactions that occurred in March 2018 for Double Company. Assume Double uses the periodic inventory system. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Double estimates sales returns at the end of each month.
Mar. 3 Purchased merchandise inventory on account from Sidecki Wholesalers, $5,500. Terms 2/15, n/EOM, FOB shipping point.
4 Paid freight bill of $70 on March 3 purchase.
4 Purchased merchandise inventory for cash of $1,100.
6 Returned $900 of inventory from March 3 purchase.
8 Sold merchandise inventory to Herrick Company, $3,400, on account. Terms 1/15, n/35.
9 Purchased merchandise inventory on account from Tex Wholesalers, $5,600. Terms 2/10, n/30, FOB destination.
10 Made payment to Sidecki Wholesalers for goods purchased on March 3, less return and discount.
12 Received payment from Herrick Company, less discount.
13 After negotiations, received a $500 allowance from Tex Wholesalers.
15 Sold merchandise inventory to Jesper Company, $1,700, on account. Terms n/EOM.
22 Made payment, less allowance, to Tex Wholesalers for goods purchased on March 9.
23 Jesper Company returned $300 of the merchandise sold on March 15.
25 Sold merchandise inventory to Salter for $1,000 on account. Terms of 1/10, n/30 was offered, FOB shipping point.
29 Received payment from Salter, less discount.
30 Received payment from Jesper Company, less return.
Click Computers has the following transactions in July related to purchasing and sale of merchandise inventory.
July 1 Purchase of $20,500 worth of computers on account, terms of 2/10, n/30.
3 Return of $4,000 of the computers to the vendor.
9 Payment made on the account.
12 Sold computers on account for $8,000 to a customer, terms 3/15, n/30.
26 Received payment from customer on balance due.
Journalize the transactions for Click Computers assuming that the company uses the periodic inventory system.
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