Accounting homework for the purchase and sales of inventory
:confused: Can someone please figure this out!! I'm so stumped and tried it but didn't get far!!
The following transactions occurred between BMS Pharmaceuticals and VIP, the pharmacy chain, October of the current year:
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Oct. 6 --VIP purchased $5,000 of merchandise from BMS on credit terms of 3/10, n/30, FOB shipping points. Separately , VIP paid a $500 bill for frieght in. These goods cost BMS $2,100.
Oct. 10 --VIP returned $900 of the merchandise purchased on Oct. 6. BMS accounted for the $900 sales return and placed the goods back in inventory (BMS's cost, $590).
Oct. 15-- VIP paid $3,000 of the invoice amount owed to BMS for the October 6 purchase, less the discount. This payment included none of the freight charge.
Oct. 27-- VIP paid the remaining amount owed to BMS for the October 6 purchase.
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Requirement: Journalize these transactions, first on the books of VIP and sescond on the books of BMS Pharmaceuticals.
