Question

JOURNAL ENTRIES (17 points). For each of the following transactions prepare the journal entry in proper for Amanda's Appliances. Show any applicable calculations. It is not necessary to provide the journal entry explanation. Amanda's Appliances uses the PERPETUAL system of accounting for inventores On June 1, Amanda Appliances purchased $375.000 of inventory count from Burman's Warehouse, FOB Shipping Point. The order was shipped on 6/1. Terms were 2/10, 1/30. Date Account -Debir Credit On June 5, Amanda Appliances paid in cashi S Warehouse i n shipping costs for the above purchase from Burman's Date Account Debit a Credit 3. On June 6th, Amanda Appliances returned $ 25,000 of the purchases from Burman's Warehouse Account Date Debit Credit 4. Amanda Appliances paid for the remaining purchases from Burman's Warehouse Company on June 9th, Date Account Debit Credit

Answer 1

Credit ($) Journal No. Date Account Titles and Explanation 1 1-Jun Purchase Accounts payable (To record the inventory purchased on credit) Debit ($) 375,000 375,000 2 5 3,500 -Jun Inventory Cash (To record the payment of freight FOB shipping point) 3,500 25,000 6-Jun Accounts Payable Purchase Return (To record the purchase return) 25,000 350,000 9-Jun Accounts payable (375000-25000) Purchase discount (350000*2%) Cash (To record the payment made to creditors) 7,000 343,000 5 400,000 30-Jun Accounts receivable Sales revenue (To record the credit sales) 400,000 80,000 Cost of goods sold Inventory (To record the cost of goods sold) 80,000 6 2,500 2-Jul Sales Return Accounts Receivable (To record the sales return) 2,500 250 Inventory Cost of goods sold (To record the cost of goods returned) 393,525 3,975 3-Jul Cash Sales Discount (397500*1%) Accounts receivable (400000-2500) To record the collection from debtors) 397,500 Please give as likes for the work. Thanks