[bmxgrandma612]

July 1
Sales dept. placed Purchase order for 100 units of navigation system. Unit price $400 per unit. What is correct book entry? I think Credit A/P and debit Purchasing.

July 15
Received invoice but goods were still on the water. At this moment what is correct bood entry?

July 31
Invoice due date is July 31. Goods still on water but we paid. What is entry? I think Credit cash and Debit A/P

August 15
Goods arrive but only half received. What is entry? What is the correct action? I think Debit inventory for half.

August 20
Rest of good arrive. What is correct entry? What is important point at this moment. I think Debit inventory for remainder.

August 31
Received order. 100 units at $500 per unit. Shipped and issued invoice same day. What is entry? I think Debit A/R and credit Inventory. In result of this transaction what happens on Balance sheet and P&L.

Sept 30
Received payment $49,900. Remiaining $100 was bank fee. What is correct entry?
I think Credit A/R, Debit Cash, & Debit Bank Fees.

On the items where I have only 1 side, I don't know what the other side should be. Please help.

[rehmanvohra]

All the transaction for purchases depend on sg\hipping terms. If the goods are shipped FOB shipping point, the ownership of the goods is transferred to the buyer. If goods are shipped FOB destination the tile is passed when goods arrive at the destination.

Jul 1 No entry required for issue of purchase order
Jul 15 FOB shipping point Debit Inventory Credit Accounts Payable
FOB destination point - No entry
Jul 31 FOB shipping point
Debit Cash Credit Accounts Payable
FOB destination Debit Advance for Purchases credit cash
Aug 15 No entry for FOB shipping point
For FOB destination Debit Inventory credit Advance for purchases for half the amount
Aug 20 same as Aug 15
Aug 31 Debit is correct but credit Sales. Also debit Cost of goods sold and credit inventory 40,000
Sep 30 correct

[rehmanvohra]

All the transaction for purchases depend on sg\hipping terms. If the goods are shipped FOB shipping point, the ownership of the goods is transferred to the buyer. If goods are shipped FOB destination the tile is passed when goods arrive at the destination.

Jul 1 No entry required for issue of purchase order
Jul 15 FOB shipping point Debit Inventory Credit Accounts Payable
FOB destination point - No entry
Jul 31 FOB shipping point
Debit Cash Credit Accounts Payable
FOB destination Debit Advance for Purchases credit cash
Aug 15 No entry for FOB shipping point
For FOB destination Debit Inventory credit Advance for purchases for half the amount
Aug 20 same as Aug 15
Aug 31 Debit is correct but credit Sales. Also debit Cost of goods sold and credit inventory 40,000
Sep 30 correct

[bmxgrandma612]

August 20:
Finally rest of the goods arrived. What is the correct entry for the book?
No entry for FOB shipping point
For FOB destination Debit Inventory Credit Advance for purchases for 50 units


What is the important point at this moment?



August 31:
We received order from Customer in Mexico. 100 units and unit price is at $500.
We shipped on same date and issued sales invoice.
At this moment, what is the correct entry for the book?

Debit A/R, Credit Sales
Debit Cost of goods sold and credit inventory 40,000


In the result of this transaction, what happens on Balance Sheet and Profit and Loss?

[Curlyben]

>Threads Merged<
As they are a continuation of the same subject.

[morgaine300]

Ben dear, this thread is in about 5 different places. We'll be lucky if we ever find it all, or don't duplicate answers a trillion times.

bmsgrandma613, PLEASE stop posting this same stuff all over the place. Take ONE PROBLEM and put it in a thread. Don't start another thread with the same one, and don't put pieces of it in someone else's thread.

I have given up on trying to follow your threads and duplicates.

[bmxgrandma612]

This is my first time on this site. Sorry I made a mistake. Didn't mean to upset anyone. I have gotten answer to everything except:
) August 20:
Finally rest of the goods arrived. What is the correct entry for the book?
No entry for FOB shipping point
For FOB destination Debit Inventory Credit Advance for purchases for 50 units

What is the important point at this moment?



6) August 31:
We received order from Customer in Mexico. 100 units and unit price is at $500.
We shipped on same date and issued sales invoice.
At this moment, what is the correct entry for the book?

Debit A/R, Credit Sales
Debit Cost of goods sold and credit inventory 40,000

In the result of this transaction, what happens on Balance Sheet and Profit and Loss?

If someone (you) would help instead to just getting upset, I will get off this site