May 15 to record return of merchandise accounts

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May 15 To record return of merchandise.Accounts payable406Merchandise inventory406WorksheetLearning Objective: 05-P1 Analyzeand record transactions formerchandise purchases using aperpetual system.Spare Parts was organized on May 1, 2011, and made its first purchase of merchandise on May 3. Thepurchase was for 1,000 units at a price of $10 per unit. On May 5, Spare Parts sold 600 of the units for $14per unit to DeSoto Co. Terms of the sale were 2/10, n/60.a.On May 7, DeSoto returns 200 units because they did not fit their needs. Spare Parts restores the unitsto its inventory.b.On May 8, DeSoto discovers that 50 units are damaged but are still of some use and, therefore, keepsthe units. Spare Parts sends DeSoto a credit memorandum for $300 to compensate for the damage.c.On May 15, DeSoto discovers that 72 units are the wrong color. DeSoto keeps 43 of these unitsbecause Spare Parts sends a $92 credit memorandum to compensate. DeSoto returns the remaining 29units to Spare Parts. Spare Parts restores the 29 returned units to its inventory.Prepare the appropriate journal entries for DeSoto Co. to record the May 5 purchase.(Omit the "$" sign inyour response.)
Assume DeSoto is a retailer that uses a perpetual inventory system and purchases these units for resale.Prepare the appropriate journal entries for DeSoto Co. to record the each of the above three separatetransactionsathroughc.(Omit the "$" sign in your response.)
10.aw ard:1 out of1.00 pointApr. 2 Purchased merchandise from Blue Company under the following terms: $3,600 price, invoicedated April 2, credit terms of 2/15, n/60, and FOB shipping point.3 Paid $200 for shipping charges on the April 2 purchase.4 Returned to Blue Company unacceptable merchandise that had an invoice price of $600.17 Sent a check to Blue Company for the April 2 purchase, net of the discount and the returnedmerchandise.18 Purchased merchandise from Fox Corp. under the following terms: $7,500 price, invoice datedApril 18, credit terms of 2/10, n/30, and FOB destination.21 After negotiations, received from Fox a $2,100 allowance on the April 18 purchase.28 Sent check to Fox paying for the April 18 purchase, net of the discount and allowance.Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventorysystem.(Omit the "$" sign in your response.)May 7: Returned unwanted merchandise (200 × $14) = $2,800.May 15: To record return of merchandise = (29 × $14) = $406.

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Term
Spring
Professor
N/A
Tags
Generally Accepted Accounting Principles, merchandise

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