lorensturgis
Nov 8, 2008, 09:51 AM
Hello Everyone:
My name is Loren Sturgis. I am currently enrolled with APSU in Clarksville, TN attempting to complete my Bachelors in Business this school year. I am challenged in this Accounting course and am in need of much help. Here is the problem:
Prepare journal entries to record the following merchandising transactions for Sheng Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivible or payable)
Aug. 1 Purchased merchandise from Arotek Company for $7,500.00 under credit
Terms of 1/10, n/30, FOB destination, invoice dated August 1.
4 At Aroek's request, Sheng paid $200.00 cash for freight charges on August 1
Purchase, reducing the amount owed to Arotek.
5 Sold merchandie to Laird Corp. for $5,200.00 under credit terms of 2/10, n/60
, FOB destination, invoice dated August 5. The merchandise had cost $4,000.00
8 Purchased merchandise from Waters Corporation for $5,400.00 under credit
Terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice
Showed that Sheng's request, Waters paid the $140.00 shipping charges and
Added the amount to the bill. (Recall: Discounts are not applied to freight and
Shipping charges.)
9 Paid $125.00 cash for shipping charges related to August 5 sale to Laird Corp.
10 Laird returned merchandise from August 5 sale that had cost Sheng $400.00
And been sold for $600.00. The merchandise was restored to iinventory.
12 After negotiations with Waters Corporation concerning problems with the
Merchandise purchased on August 8, Sheng received a credit memorandum
From Waters granting a price reduction of $700.00
15 Received balance due from Laird Corp. for August 5 sale less the return on
August 10
18 Paid the amount due Waters Corporation for August 8 purchase less the price
Reduction granted.
19 Sold merchandise to Tux Co. for $4,800.00 under credit terms of 1/10, n/30
FOB shipping point, invoice dated August 19. The merchandise had cost
$2,400.00.
22 Tux requested a price reduction on the August 19 sale because the
Merchandise did not meet specifications. Sheng sent Tux a $500.00 credit
Memorandum to resolve the issue.
29 Received Tux's cash payment for the amount due on the August 19 sale.
30 Paid Arotek Company the amount due from the August 1 purchase.
Please help me sort this out. Thanks
Loren
My name is Loren Sturgis. I am currently enrolled with APSU in Clarksville, TN attempting to complete my Bachelors in Business this school year. I am challenged in this Accounting course and am in need of much help. Here is the problem:
Prepare journal entries to record the following merchandising transactions for Sheng Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivible or payable)
Aug. 1 Purchased merchandise from Arotek Company for $7,500.00 under credit
Terms of 1/10, n/30, FOB destination, invoice dated August 1.
4 At Aroek's request, Sheng paid $200.00 cash for freight charges on August 1
Purchase, reducing the amount owed to Arotek.
5 Sold merchandie to Laird Corp. for $5,200.00 under credit terms of 2/10, n/60
, FOB destination, invoice dated August 5. The merchandise had cost $4,000.00
8 Purchased merchandise from Waters Corporation for $5,400.00 under credit
Terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice
Showed that Sheng's request, Waters paid the $140.00 shipping charges and
Added the amount to the bill. (Recall: Discounts are not applied to freight and
Shipping charges.)
9 Paid $125.00 cash for shipping charges related to August 5 sale to Laird Corp.
10 Laird returned merchandise from August 5 sale that had cost Sheng $400.00
And been sold for $600.00. The merchandise was restored to iinventory.
12 After negotiations with Waters Corporation concerning problems with the
Merchandise purchased on August 8, Sheng received a credit memorandum
From Waters granting a price reduction of $700.00
15 Received balance due from Laird Corp. for August 5 sale less the return on
August 10
18 Paid the amount due Waters Corporation for August 8 purchase less the price
Reduction granted.
19 Sold merchandise to Tux Co. for $4,800.00 under credit terms of 1/10, n/30
FOB shipping point, invoice dated August 19. The merchandise had cost
$2,400.00.
22 Tux requested a price reduction on the August 19 sale because the
Merchandise did not meet specifications. Sheng sent Tux a $500.00 credit
Memorandum to resolve the issue.
29 Received Tux's cash payment for the amount due on the August 19 sale.
30 Paid Arotek Company the amount due from the August 1 purchase.
Please help me sort this out. Thanks
Loren