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    pitrinco09's Avatar
    pitrinco09 Posts: 7, Reputation: 1
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    #1

    Dec 1, 2009, 09:35 AM
    Perpetual inventory system
    Sansomite Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Sansomite's inventory consisted of suitcases costing $1,200
    During the month of July the following merchandising transactions occurred:

    July 1 Purchased suitcases on account for $1,800 from Trunk Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $100 for freight on this date.

    July 3 Sold suitcases on account to Satchel World for $2,000 The cost of suitcases sold is
    $1,200

    July 9 Paid Trunk Manufacturers in full.

    July 12 Received payment in full from Satchel World.


    How do I post July 12 Transaction?
    smdk's Avatar
    smdk Posts: 73, Reputation: 2
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    #2

    Dec 1, 2009, 10:02 AM

    What does 1/10,2/10,n/30,FOB,mean?
    smdk's Avatar
    smdk Posts: 73, Reputation: 2
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    #3

    Dec 1, 2009, 10:04 AM
    Credit sales is shown in sales book then posted to ledger.
    smdk's Avatar
    smdk Posts: 73, Reputation: 2
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    #4

    Dec 1, 2009, 10:05 AM
    You use perpetual inventory system so please tell number of units... of suitcases.
    smdk's Avatar
    smdk Posts: 73, Reputation: 2
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    #5

    Dec 1, 2009, 10:08 AM

    What method is used by you LIFO,FIFO,weighted average method?
    smdk's Avatar
    smdk Posts: 73, Reputation: 2
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    #6

    Dec 1, 2009, 10:12 AM
    The 12 July entry will nullify the 3 July entry...
    pitrinco09's Avatar
    pitrinco09 Posts: 7, Reputation: 1
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    #7

    Dec 1, 2009, 11:51 AM

    It didn't tell me how many units so I'm guessing is only 1 unit.
    The 1/10 is if he paid in 10 days they will gat 1% discount, 2/10 if they pay in the first 10 days they gey 2% discount , n/30 is the term to pay back without interest.
    smdk's Avatar
    smdk Posts: 73, Reputation: 2
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    #8

    Dec 1, 2009, 01:53 PM

    OK they paid in 9 days so they get 2% discount...
    P00245322's Avatar
    P00245322 Posts: 7, Reputation: 1
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    #9

    Dec 1, 2009, 02:30 PM

    Yes they get 2% discount, but I would like to know how would I post the July 12, transaction.

    The July 9 transaction I posted like this:
    Accounts Payable 1,700.00
    Sales Discounts 34.00
    Cash 1,666.00

    Did I did it correct?
    smdk's Avatar
    smdk Posts: 73, Reputation: 2
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    #10

    Dec 2, 2009, 01:22 AM

    July 3 credit sales 2000 July 12 discount allowed 40 July 12 cash received 1960... hopefully that helped... rep me if it did.
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