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PR 6-5A Sales-related and purchase-related transac...

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PR 6-5A Sales-related and purchase-related transactions The following were selected from among the transactions completed by The Grill Company during April of the current year: Apr. 3. Purchased merchandise on account from Grizzly Co., list price $60,000, trade discount 30%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $23,750. The cost of the merchandise sold was $14,000. Apr. 5. Purchased merchandise on account from Ferraro Co., $26,000, terms FOB shipping point, 2/10, n/30, with prepaid freight of $600 added to the invoice. 6. Returned $7,000 ($10,000 list price less trade discount of 30%) of merchandise purchased on April 3 from Grizzly Co. 11. Sold merchandise on account to Logan Co., list price $12,000, trade discount 25%, terms 1/10, n/30. The cost of the merchandise sold was $5,000. 13. Paid Grizzly Co. on account for purchase of April 3, less return of April 6 and discount. 14. Sold merchandise on VISA, $90,000. The cost of the merchandise sold was $55,000. 15. Paid Ferraro Co. on account for purchase of April 5, less discount. 21. Received cash on account from sale of April 11 to Logan Co., less discount. 24. Sold merchandise on account to Half Moon Co., $17,500, terms 1/10, n/30. The cost of the merchandise sold was $10,000. 28. Paid VISA service fee of $4,000. 30. Received merchandise returned by Half Moon Co. from sale on April 24, $2,500. The cost of the returned merchandise was $1,400. Instructions Journalize the transactions.

 

Paper#9464 | Written in 18-Jul-2015

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