225. Journalize the following transactions assuming a perpetual inventory system.:
May 5
Purchased merchandise from Archie Co., $6,000, terms FOB shipping point, 2/10, n/30.
Prepaid freight costs of $100 were added to the invoice.
May 12
Issued a debit memo to Archie Co., for $2,500 of merchandise returned from purchase on May 5th.
May 14
Paid Archie Co. for invoice of May 5, less debit memo of May 12 and discount.
Journal
Date
Description
Post Ref
Debit
Credit
226. Record the following transactions for Sparky’s Pet Shop using the general journal form provided below. Assume Sparky’s uses a perpetual inventory system. Omit transaction descriptions from entries:
Date
Transaction
August 1
Purchased $6,000 of merchandise on account, terms 2/10, n/30.
August 3
Returned $1,500 of merchandise purchased on August 1 due to defects.
August 7
Recorded cash sales for the first week of August $9,750; cost of the merchandise was $4,000.
August 10
Sale on account made to a local breeder for $500, terms 1/10 net 30; cost of the merchandise was $200.
August 11
Paid for the merchandise purchased on August 1, less return.
August 20
Received payment from sale of August 10. The customer took the discount.
Date
Accounts
Debit
Credit
227. Journalize the following transactions for both Abbott Co. (seller) and Dalton Co. (buyer). Assume both the companies use the perpetual inventory system.
July 3
Abbott Co.sold merchandise on account to Dalton Co., $7,500, terms FOB shipping point, net/eom. The cost of the merchandise sold was $4,400.
July 5
Dalton Co. paid $275 freight charges on purchase from Abbott Co.
July 9
Abbott Co. issued Dalton Co. a credit memo for merchandise returned, $2,250.
The cost of the merchandise returned was $1,325.
July 11
Abbott Co. received payment from Dalton Co. for purchase of July 3.
Abbott Co.
Dalton Co.
Date
Accounts
Debit
Credit
Accounts
Debit
Credit
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