Problem 4-1A Prepare journal entries to record the following merchandising transactions of Flora Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable ? Arch.) July 1 Purchased merchandise from Arch Company for $6,400 under credit terms 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Driver Co. for $900 under credit terms 1/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $533. 3 Paid $130 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,700 for $2,100 cash. 9 Purchased merchandise from Kew Co. for $2,200 under credit terms of 1/15, n/60, FOB destination, invoice dated July 9. 11 Received a $200 credit memorandum from Kew Co. for the return of part of the merchandise purchased on July 9. 12 Received the balance due from Driver Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Arch Company within the discount period. 19 Sold merchandise that cost $800 to Surtis Co. for $1,200 under credit terms of 1/15, n/60, FOB shipping point, invoice dated July 19. 21 Issued a $200 credit memorandum to Surtis Co. for the allowance on goods sold on July 19. 24 Paid Kew Co. the balance due after deducing the discount. 30 Received the balance due from Surtis Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,200 to Driver Co. for $6,900 under credit terms of 1/10, n/60, FOB shipping point, invoice dated July 31.
Paper#11153 | Written in 18-Jul-2015Price : $25