Question

Sep. 3 Purchased merchandise inventory on account from Sheldon Wholesalers, $ 3,500. Terms 1 / 15, n / E O M, FOB shipping point.

4 Paid freight bill of $ 75 on September 3 purchase.

4 Purchase merchandise inventory for cash of $ 1,900.

6 Returned $ 400 of inventory from September 3 purchase.

8 Sold merchandise inventory to Harvey Company, $ 6,300, on account. Terms 1 / 15, n / 35. Cost of goods, $ 2,835

9 Purchased merchandise inventory on account from Tripp Wholesalers, $ 12,000. Terms 1 / 10, n / 30, FOB destination.

10 Made payment to Sheldon Wholesalers for goods purchased on September 3 , less return and discount.

12 Received payment from Harvey Company, less discount.

13 After negotiations, received a $ 100 allowance from Tripp Wholesalers.

15 Sold merchandise inventory to Johnson Company, $ 3,500, on account. Terms n / E O M. Cost of goods, $ 1,400.

22 Made payment, less allowance, to Tripp Wholesalers for goods purchased on September 9 .

23 Johnson Company returned $ 800 of the merchandise sold on September 15. Cost of goods, $ 320.

25 Sold merchandise inventory to Smecker for $ 1,500 on account that cost $ 555 . Terms of 1 / 10, n / 30 was offered, FOB shipping point. As a courtesy to Smecker, $ 90 of freight was added to the invoice for which cash was paid by Cardinal.

29 Received payment from Smecker, less discount.

30 Received payment from Johnson Company, less return.

 

Answer 1

Journal entries
Date	Accounts Name	Debit	Credit		Calculation
3-Sep	Merchandise Inventory	3,500
	Accounts Payable - Sheldon Wholesalers		3,500
4-Sep	Merchandise Inventory	75
	Cash		75
4-Sep	Merchandise Inventory	1,900
	Cash		1,900
6-Sep	Accounts Payable - Sheldon Wholesalers	400
	Merchandise Inventory		400
8-Sep	Accounts Receivable - Harvey Company	6,300
	Sales Revenue		6,300
	Cost of goods sold	2,835
	Merchandise Inventory		2,835
9-Sep	Merchandise Inventory	12,000
	Accounts Payable - Tripp Wholesalers		12,000
10-Sep	Accounts Payable - Sheldon Wholesalers	3,100			=3,500-400
	Cash		3,069
	Merchandise Inventory		31		=3,100*1%
12-Sep	Cash	6,237
	Sales Discounts	63			=6,300*1%
	Accounts Receivable - Harvey Company		6,300
13-Sep	Accounts Payable - Tripp Wholesalers	100
	Merchandise Inventory		100
15-Sep	Accounts Receivable - Johnson Company	3,500
	Sales Revenue		3,500
	Cost of goods sold	1,400
	Merchandise Inventory		1,400
22-Sep	Accounts Payable - Tripp Wholesalers	11,900			=12,000-100
	Cash		11,900
23-Sep	Sales Returns & Allowances	800
	Accounts Receivable - Johnson Company		800
	Merchandise Inventory	320
	Cost of goods sold		320
25-Sep	Accounts Receivable - Smecker	1,590			=1,500+90
	Sales Revenue		1,500
	Cash		90
	Cost of goods sold	555
	Merchandise Inventory		555
29-Sep	Cash	1,575
	Sales Discounts	15			=1,500*1%
	Accounts Receivable - Smecker		1,590
30-Sep	Cash	2,700			=3,500-800
	Accounts Receivable - Johnson Company		2,700