5-39PGA
Question
Journalize the following transactions that occurred in March 2018 for Double Company. Assume Double uses the periodic inventory system. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Double estimates sales returns at the end of each month.
Mar. 3 Purchased merchandise inventory on account from Sidecki Wholesalers, \(5,500. Terms 2/15, n/EOM, FOB shipping point.
4 Paid freight bill of \)70 on March 3 purchase.
4 Purchased merchandise inventory for cash of \(1,100.
6 Returned \)900 of inventory from March 3 purchase.
8 Sold merchandise inventory to Herrick Company, \(3,400, on account. Terms 1/15, n/35.
9 Purchased merchandise inventory on account from Tex Wholesalers, \)5,600. Terms 2/10, n/30, FOB destination.
10 Made payment to Sidecki Wholesalers for goods purchased on March 3, less return and discount.
12 Received payment from Herrick Company, less discount.
13 After negotiations, received a \(500 allowance from Tex Wholesalers.
15 Sold merchandise inventory to Jesper Company, \)1,700, on account. Terms n/EOM.
22 Made payment, less allowance, to Tex Wholesalers for goods purchased on March 9.
23 Jesper Company returned \(300 of the merchandise sold on March 15.
25 Sold merchandise inventory to Salter for \)1,000 on account. Terms of 1/10, n/30 was offered, FOB shipping point.
29 Received payment from Salter, less discount.
30 Received payment from Jesper Company, less return.
Step-by-Step Solution
VerifiedThe total debit and credit is $35,570.
The term accounts payable refers to suppliers or vendors from whom a business entity purchases goods or services on credit, and payment is due to them. It is reported in the liabilities section of the balance sheet under the current liabilities head.
Date | Accounts and Explanation | Debit ($) | Credit ($) |
2018 |
|
|
|
Mar 3 | Merchandise inventory | 5,500 |
|
| Accounts payable (Sidecki Wholesalers) |
| 5,500 |
Mar 4 | Merchandise inventory | 70 |
|
| Cash |
| 70 |
Mar 4 | Merchandise inventory | 1,100 |
|
| Cash |
| 1,100 |
Mar 6 | Accounts payable (Sidecki Wholesalers) | 900 |
|
| Merchandise inventory |
| 900 |
Mar 8 | Accounts receivable (Herrick Company) | 3,400 |
|
| Sales revenue |
| 3,400 |
Mar 9 | Merchandise inventory | 5,600 |
|
| Accounts payable (Tex Wholesaler) |
| 5,600 |
Mar 10 | Accounts payable (Sidecki Wholesalers) [5500-900] | 4,600 |
|
| Cash |
| 4462 |
| Merchandise inventory (4600*3%) |
| 138 |
Mar 12 | Cash | 3,332 |
|
| Sales discount (3400*2%) | 68 |
|
| Accounts receivable (Herrick Company) |
| 3400 |
Mar 13 | Accounts payable (Tex Wholesalers) | 500 |
|
| Merchandise inventory |
| 500 |
Mar 15 | Accounts receivable (Jesper company) | 1,700 |
|
| Sales revenue |
| 1,700 |
Mar 22 | Accounts payable (Tex Wholesalers) [5600-500] | 5,100 |
|
| Cash |
| 5,100 |
Mar 23 | Sales revenue | 300 |
|
| Accounts receivable (Jesper company) |
| 300 |
Mar 25 | Accounts receivable (Salter) | 1,000 |
|
| Sales revenue |
| 1,000 |
Mar 29 | Cash | 990 |
|
| Sales discount (1000*1%) | 10 |
|
| Accounts receivable (Salter) |
| 1000 |
Mar 30 | Cash | 1,400 |
|
| Accounts receivable (Jesper company) [1700-300] |
| 1,400 |