[myra123]

Please help me prepare a journal for this transaction.


Barbara Jewelers completed the following transactions in April 2009. Prepare Journal entries for Michelin Jewelers' books. Barbara is the purchaser, and others it is the seller.

April 2 Barbara purchased merchandise for $20,000 on account. The terms were FOB
Shipping point, 2/10 n/30. Michelin paid the transportation costs of $1,200 in cash.

April 4 Barbara returned $3,400 of defective merchandise from April 2 purchase.

April 5 Barbara sold $9,000 of merchandise on account. The terms were FOB shipping
Point, 3/15 n/30. Barbara's cost for the merchandise sold was $5,500.

April 10 Barbara paid the balance for the merchandise purchase on April 2.

April 19 Barbara received a payment for the balance of the April 5 transaction.

[myra123]

Please help me prepare a journal for this transaction.


Barbara Jewelers completed the following transactions in April 2009. Prepare Journal entries for Michelin Jewelers' books. Barbara is the purchaser, and others it is the seller.

April 2 Barbara purchased merchandise for $20,000 on account. The terms were FOB
Shipping point, 2/10 n/30. Michelin paid the transportation costs of $1,200 in cash.

April 4 Barbara returned $3,400 of defective merchandise from April 2 purchase.

April 5 Barbara sold $9,000 of merchandise on account. The terms were FOB shipping
Point, 3/15 n/30. Barbara's cost for the merchandise sold was $5,500.

April 10 Barbara paid the balance for the merchandise purchase on April 2.

April 19 Barbara received a payment for the balance of the April 5 transaction.

[Criado]

It looks like homework to me. I'll just give you several check figures.

April 2 Debit. Freight In $1,200
April 4 Credit. Accounts Payable $3,400
April 5 Debit. Cost of Goods Sold $5,500

[morgaine300]

There are too many different entries involved in merchandising, especially when you're doing both the buyer side and the seller side. There's also two methods: perpetual and periodic. These days mostly perpetual is done, which I assume if someone doesn't tell me otherwise. You need to look through your book and at least make some attempt at trying to do these entries, then post those attempts and then we can look through them.

Just as a note, most books I've worked with do not use a Freight-In account -- they put freight directly into inventory. There are exceptions of course, but this means we can't assume things like this. You need to check your textbook and see what they are doing with it.

[949]

Perpetual:
April 2
dr. merch inv. 20000
Cr. a/p 20000

dr. merch inv. 1200
Cr. Cash 1200

April 4
dr. a/p 3400
Cr. Merch inv. 3400

April 5
dr. a/r 9000
Cr. Sales rev 9000
dr. cogs 5500
Cr. Merch inv. 5500

April 10
dr. a/p 16600
Cr. Cash 16268
Cr. Merch inv. 332

April 19
dr. cash 9000
Cr. a/r 9000

Periodic:

April 2
dr. purchses 20000
Cr. a/p 20000

dr. freight in 1200
Cr. Cash 1200

April 4
dr. a/p 3400
Cr. Purchases returns and allowances 3400

April 5
dr. a/r 9000
Cr. Sales revenue 9000

April 10
dr. a/p 16600
Cr. Cash 16268
Cr. Purchases discount 332

[949]

It looks like homework to me. I'll just give you several check figures.

April 2 Debit. Freight In $1,200
April 4 Credit. Accounts Payable $3,400
April 5 Debit. Cost of Goods Sold $5,500

Your April 4th answer is incorrect.:)

[morgaine300]

949, can you please not just do people's homework for them. It's not really a way to actually learn, plus it's their homework and we aren't here just to do homework for people, but rather to help them understand it.

[949]

I C.
Well it seemed like its been a while and he may just need the answers at this point.

I just enjoy helping people out.

If its something that I can help people out with, I don't mind. Its only a few minutes of my time.

[morgaine300]

It isn't just about your time. It's also about our guidelines:
https://www.askmehelpdesk.com/financ...-b-u-font.html

If it's been a while and the person hasn't returned, very likely they either don't care, or they really did just expect someone to give them answers instead of trying to do their own work. People also don't learn just from seeing answers. If they did, all those answers to the odd problems in math books should be enough to help everyone learn without a class or teacher or anything, eh?

I work with college students for a living -- and it's disconcerting to know they can just get online and get all their homework answers. People never stop and think about that side of it, but that's the side I see every day.