Question

Record the following transactions in the T-accounts provided for S&V Office Supply Company.

EXERCISE ONE: Record the following transactions in the T-accounts provided (NEXT PAGE) for S & V Office Supply Company. 1) S& V purchased $500 worth of merchandise for cash. There were no shippng costs. S & V purchased $4,000 of merchandise on account: Terms n/30. FOB Shipping Point (buyer pays). 2) S&V separately paid cash to the freight company- $45. Recognized revenue of $500 on the cash sale of merchandise. The cost of the merchandise sold was $280. The merchandise was shipped FOB Destination (seller pays) and S&V paid $65 in shipping costs. 3) 4) S & V paid for the merchandise purchased in #2. 5) Recognized Revenue of $1,200 on the sale of merchandise to a customer who paid cash The cost of the merchandise sold was $950. There were no shipping costs S& V purchased $2,000 of merchandise from its supplier on account, terms 3/15, n/45. There were no shipping costs. 6) Recognized revenue of $2,000 on the sale of merchandise on account. The terms of the sale are 2/10, n/30. The cost of the merchandise sold was $1,600. No shipping costs. 7) Accepted a return of merchandise with a list price of $50 from the cash customer in #3 The cost of the merchandise returned was $30. The customer received a cash refund for the $50 8) S & V returned $100 worth of the merchandise purchased in #6. Apply the discount from the credit customer in #7. Received payment from the customer in #7 net of the discount. 9) 10) 11) Apply the discount for the merchandise purchased in #6. Don't forget to deduct the amount returned in #9 before calculating the discount. 12) S & V paid for the merchandise purchased in #6 less the amount returned in #9 and the discount. 13)

Answer 1