Homework Solutions  
» Home
  

See All Homework
Questions here

Question Description

 
Posted by: Homeworkhelp
Price Quoted by Student: $10
Posted On: 2016-04-02 07:07:55
 
Question

Blink Company  - Prepare journal entries to record the following

 

 

Blink Company  - Prepare journal entries to record the following merchandising transactions of Blink Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for

example, record the purchase on July 1 in Accounts Payable—Boden.)

 

Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.

Jul. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500.

Jul. 3 Paid $125 cash for freight charges on the purchase of July 1.

Jul. 8 Sold merchandise that had cost $1,300 for $1,700 cash.

Jul. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

Jul. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.

Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.

Jul. 16 Paid the balance due to Boden Company within the discount period.

Jul. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

Jul. 21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.

Jul. 24 Paid Leight Co. the balance due after deducting the discount.

Jul. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.

Jul. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

 

 

TUTORIAL PREVIEW

July  1        Merchandise Inventory........................................................     6,000

                           Accounts Payable—Boden.........................................                             6,000

                     Purchased goods on credit.

         2       Accounts Receivable—Creek Co.........................................        900


Solutions
July  1     &nbs
Price $10
Attachment 1: Blink Company.docx
Solution Posted By: Homeworkhelp    Posted on: 02-04-2016