chapter04probsetc - PROBLEM SET C PROBLEM 4-1C Prepare...

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PROBLEM SET C PROBLEM 4-1C Prepare journal entries to record the following merchandising transactions of Cruz Company, which applies the perpetual inventory system. ( Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Wizer Co.) Aug. 1 Purchased merchandise from Wizer Company for $25,000 under credit terms of 1 / 10, n / 45, FOB shipping point. 2 Paid $300 for freight charges on the purchase of August 1. 4 Sold merchandise to Newman Corp. for $3,800 under credit terms of 2 / 10, n / 60, FOB shipping point. The merchandise had cost $1,700. 6 Purchased merchandise from Fisher Corporation for $6,000 under credit terms of 2/15,n/30. FOB destination. 7 Received a $1,200 credit memorandum for the return of defective merchandise purchased on August 6. 8 Sold merchandise that cost $500 for $900 cash. 9 Paid the balance due to Wizer Co. within the discount period. 11 Sold merchandise that cost $1,000 to Melsco Co. for $3,100 under credit terms 2/10,n/30. FOB shipping point. 14 Received the balance due from Newman Co. for the August 4 sale within the discount period. 15 Paid $250 shipping charges on the August 11 sale to Melsco Co. and added the amount to their bill. 16 Issued a $200 credit memorandum to Melsco Co. for defective merchandise. 21 Received Melsco Co’s cash payment for the amount due from the August 11 purchase. 30 Paid Fisher Co. the amount due from the August 6 purchase. PROBLEM 4-2C Prepare journal entries to record the following merchandising transactions of Florence’s Tower Company, which applies the perpetual inventory system. ( Hint: It will help to identify each receivable and payable; for example, record the purchase on June 1 in Accounts Payable—
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This note was uploaded on 09/23/2010 for the course FIN 310 taught by Professor Smith during the Fall '10 term at Arizona Western College.

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chapter04probsetc - PROBLEM SET C PROBLEM 4-1C Prepare...

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