[lorensturgis]

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

[starbuck8]

Welcome to the site Loren.

This is Introductions. Just a place to come and introduce yourself.

You won't get any answers to your question in this category. Take a little time to get to know the site. There are many many topics to post questions under. Pick the one that best suits your question, and that is where you will get your answers. It might help to go through rules and regulations, to get yourself familiar with this site.
:)

[Clough]

Hi, Loren!

Greetings and WELCOME to the site! I just moved your question that you had posted in Introductions to this topic area so that it would get the most exposure to those who are best able to address it. Introductions is for people to introduce themselves and we try to not ask questions there.

It can be a little confusing when first learning how to use this site! Your question will get noticed much more in this topic area.

Concerning how to ask homework questions here, please click on the following link.

Ask Me Help Desk - Announcements in Forum : Homework Help

We would appreciate it if you would return to Introductions sometime to tell us a little about yourself though, if you would be willing to do that.

Thanks!