Purchased merchandise on account from Dakota Supply Co.
April 2 Purchased merchandise on account from Dakota Supply Co. $6,900, terms 1/10, n/30.
Dr Merchandise Inventory 6,900
Cr Accounts Payable 6,900
4 Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30. The cost of the
merchandise sold was $4,100.
Dr Accounts Receivable 5,500
Cr Sales 5,500
Dr Cost of Goods Sold 4,100
Cr Merchandise Inventory 4,100
5 Paid $240 freight on April 4 sale.
Dr Freight-Out 240
Cr Cash 240
6 Received credit from Dakota Supply Co. for merchandise returned $500.
Dr Accounts Payable 500
Cr Merchandise Inventory 500
11 Paid Dakota Supply Co. in full, less discount.
Dr Accounts Payable 6,400
Cr Cash 6,336
Cr Merchandise Inventory 64
13 Received collections in full, less discounts, from customers billed on April 4.
Dr Cash 5,445
Dr Sales Discounts 55
Cr Accounts Receivable 5,500
14 Purchased merchandise for cash $3,800.
Dr Merchandise Inventory 3,800
Cr Cash 3,800
16 Received refund from supplier for returned goods on cash purchase of April 14, $500.
Dr Cash 500
Cr Merchandise Inventory 500
18 Purchased merchandise from Skywalker Distributors $4,500, FOB shipping point, terms 2/10, n/30.
Dr Merchandise Inventory 4,500
Cr Accounts Payable 4,500
20 Paid freight on April 18 purchase $100.
Dr Merchandise Inventory 100
Cr Cash 100
23 Sold merchandise for cash $6,400.The merchandise sold had a cost of $5,120.
Dr Cash 6,400
Cr Sales 6,400
Dr Cost of Goods Sold 5,120
Cr Merchandise Inventory 5,120
26 Purchased merchandise for cash $2,300.
Dr Merchandise Inventory 2,300
Cr Cash 2,300
27 Paid Skywalker Distributors in full, less discount.
Dr Accounts Payable 4,500
Cr Cash 4,410
Cr Merchandise Inventory 90
29 Made refunds to cash customers for defective merchandise $90. The returned merchandise had a scrap value of $30.
Dr Sales Returns and Allowances 90
Cr Cash 90
Dr Merchandise Inventory 30
Cr Cost of Goods Sold 30
30 Sold merchandise on account $3,700, terms n/30.The cost of the merchandise sold was $2,800.
Dr Accounts Receivable 3,700
Cr Sales 3,700
Dr Cost of Goods Sold 2,800
Cr Merchandise Inventory 2,800
