5-35PGA
Question
Journalize the following transactions that occurred in November 2018 for Julie’s Fun World. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Julie’s Fun World estimates sales returns at the end of each month.
Nov. 4 Purchased merchandise inventory on account from Vera Company, \(5,000. Terms 3/10, n/EOM, FOB shipping point.
6 Paid freight bill of \)100 on November 4 purchase
8 Returned half the inventory purchased on November 4 from Vera Company.
10 Sold merchandise inventory for cash, \(1,100. Cost of goods, \)400. FOB destination.
11 Sold merchandise inventory to Geary Corporation, \(11,100, on account, terms of 2/10, n/EOM. Cost of goods, \)6,105. FOB shipping point.
12 Paid freight bill of \(20 on November 10 sale.
13 Sold merchandise inventory to Caldwell Company, \)9,500, on account, terms of n/45. Cost of goods, \(5,225. FOB shipping point.
14 Paid the amount owed on account from November 4, less return and discount.
17 Received defective inventory as a sales return from the November 13 sale, \)500. Cost of goods, \(275.
18 Purchased inventory of \)3,600 on account from Rainman Corporation. Payment terms were 2/10, n/30, FOB destination.
20 Received cash from Geary Corporation, less discount.
26 Paid amount owed on account from November 18, less discount.
28 Received cash from Caldwell Company, less return.
29 Purchased inventory from Sandra Corporation for cash, \(12,300, FOB shipping point. Freight in paid to shipping company, \)170.
Step-by-Step Solution
VerifiedThe total debit and credit is $84,095.
Accounting refers to an organized, step-by-step approach that facilitates business entities to maintain their accounting records. Accounting considers financial transactions only, and records the same in the books for summarizing them annually.
Date | Accounts and Explanation | Debit ($) | Credit ($) |
Nov 4 | Merchandise inventory | 5,000 |
|
| Accounts payable (Vera company) |
| 5,000 |
Nov 6 | Merchandise inventory | 100 |
|
| Cash |
| 100 |
Nov 8 | Accounts payable (Vera company) | 2,500 |
|
| Merchandise inventory |
| 2,500 |
Nov 10 | Cash | 1,100 |
|
| Sales revenue |
| 1,100 |
Nov 10 | Cost of goods sold | 400 |
|
| Merchandise inventory |
| 400 |
Nov 11 | Accounts receivable (Geary corp) | 11,100 |
|
| Sales revenue |
| 11,100 |
Nov 11 | Cost of goods sold | 6,105 |
|
| Merchandise inventory |
| 6,105 |
Nov 12 | Delivery expense | 20 |
|
| Cash |
| 20 |
Nov 13 | Accounts receivable (Caldwell company) | 9,500 |
|
| Sales revenue |
| 9,500 |
Nov 13 | Cost of goods sold | 5,225 |
|
| Merchandise inventory |
| 5,225 |
Nov 14 | Accounts payable (Vera company) [5000-2500] | 2,500 |
|
| Cash |
| 2,425 |
| Merchandise inventory (2500*3%) |
| 75 |
Nov 17 | Sales returns and allowances | 500 |
|
| Accounts receivable (Caldwell company) |
| 500 |
Nov 17 | Merchandise inventory | 275 |
|
| Cost of goods sold |
| 275 |
Nov 18 | Merchandise inventory | 3,600 |
|
| Accounts payable (Rainman Corp) |
| 3,600 |
Nov 20 | Cash | 10,878 |
|
| Sales discount (11,100*2%) | 222 |
|
| Accounts receivable (Geary Corp) |
| 11,100 |
Nov 26 | Accounts payable (Rainman Corp) | 3,600 |
|
| Merchandise inventory (3600*2%) |
| 72 |
| Cash |
| 3,528 |
Nov 28 | Cash (9500-500) | 9,000 |
|
| Accounts receivable (Caldwell Company) |
| 9,000 |
Nov 29 | Merchandise inventory | 12,300 |
|
| Cash |
| 12,300 |
Nov 29 | Merchandise inventory | 170 |
|
| Cash |
| 170 |