P5-31a journalizing purchase and sale transactions journalize 12147

P5-31A Journalizing purchase and sale transactions
Journalize the following transactions that occurred in September 2015 for
Aquamarines. No explanations are needed. Identify each accounts payable and
accounts receivable with the vendor or customer name.
Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $5,000.
Terms 1/15, n/EOM, FOB shipping point.
4 Paid freight bill of $80 on September 3 purchase.
4 Purchased merchandise inventory for cash of $1,700.
6 Returned $500 of inventory from September 3 purchase.
8 Sold merchandise inventory to Hermosa Company, $6,000, on account. Terms
2/15, n/35. Cost of goods, $2,640.
9 Purchased merchandise inventory on account from Thomas Wholesalers,
$8,000. Terms 2/10, n/30, FOB destination.
10 Made payment to Shallin Wholesalers for goods purchased on September 3,
less return and discount.
12 Received payment from Hermosa Company, less discount.
13 After negotiations, received a $200 allowance from Thomas Wholesalers.
15 Sold merchandise inventory to Jordan Company, $2,500, on account. Terms
1/10, n/EOM. Cost of goods, $1,050.
22 Made payment, less allowance, to Thomas Wholesalers for goods purchased on
September 9.
23 Jordan Company returned $400 of the merchandise sold on September 15.
Cost of goods, $160.
25 Sold merchandise inventory to Smithsons for $1,100 on account that cost
$400. Terms of 2/10, n/30 were offered, FOB shipping point. As a courtesy to
Smithsons, $75 of freight was added to the invoice for which cash was paid by
Aquamarines.
26 After negotiations, granted a $100 allowance to Smithsons for merchandise
purchased on September 25.
29 Received payment from Smithsons, less allowance and discount.
30 Received payment from Jordan Company, less return.

P5-31A student template.xls

Date
Sep. 3

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Sep. 4

Sep. 4

Sep. 6

Sep. 8

Sep. 8

Sep. 9

Sep. 10

Sep. 12

Sep. 13

Sep. 15

Sep. 15

Sep. 22

Sep. 23

Sep. 23

Sep. 25

Sep. 25

Sep. 25

Sep. 26

Sep. 29

Sep. 30

Accounts and Explanation

Debit

Credit

Available accounts for journal entries:
Merchandise Inventory
Accounts Payable—Shallin Wholesalers
Merchandise Inventory
Cash
Merchandise Inventory
Cash
Accounts Payable—Shallin Wholesalers
Merchandise Inventory
Accounts Receivable—Hermosa Company
Sales Revenue
Cost of Goods Sold
Merchandise Inventory
Merchandise Inventory
Accounts Payable—Thomas Wholesalers
Accounts Payable—Shallin Wholesalers
Cash
Merchandise Inventory
Cash
Sales Discounts
Accounts Receivable—Hermosa Company
Accounts Payable—Thomas Wholesalers
Merchandise Inventory
Accounts Receivable—Jordan Company
Sales Revenue
Cost of Goods Sold
Merchandise Inventory
Accounts Payable—Thomas Wholesalers
Cash
Sales Returns and Allowance
Accounts Receivable—Jordan Company
Merchandise Inventory
Cost of Goods Sold
Accounts Receivable—Smithsons
Sales Revenue