5-46PGA
Question
Journalize the following transactions that occurred in June 2018 for Daley Company. Assume Daley uses the periodic inventory system. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Daley estimates sales returns at the end of each month.
Jun. 3 Purchased merchandise inventory on account from Sherry Wholesalers, \(5,500. Terms 3/15, n/EOM, FOB shipping point.
4 Paid freight bill of \)42 on June 3 purchase.
4 Purchased merchandise inventory for cash of \(1,100.
6 Returned \)200 of inventory from June 3 purchase.
8 Sold merchandise inventory to Henrich Company, \(4,400, on account. Terms 2/15, n/35.
9 Purchased merchandise inventory on account from Tex Wholesalers, \)4,600. Terms 1/10, n/30, FOB destination.
10 Made payment to Sherry Wholesalers for goods purchased on June 3, less return and discount.
12 Received payment from Henrich Company, less discount.
13 After negotiations, received a \(300 allowance from Tex Wholesalers.
15 Sold merchandise inventory to Jarvis Company, \)1,500, on account. Terms n/EOM.
22 Made payment, less allowance, to Tex Wholesalers for goods purchased on June 9.
23 Jarvis Company returned \(100 of the merchandise sold on June 15.
25 Sold merchandise inventory to Smith for \)700 on account. Terms of 3/10, n/30 was offered, FOB shipping point.
29 Received payment from Smith, less discount.
30 Received payment from Jarvis Company, less return.
Step-by-Step Solution
VerifiedThe total of debit and credit is $34,542.
In accounting, the term discount refers to the reduction or rebate in the price of the goods by the businesses to their customers. Discounts are majorly bifurcated or divided into sales and purchase discounts, and both are treated separately while maintaining books.
Date | Accounts and Explanation | Debit ($) | Credit ($) |
2018 |
|
|
|
Jun 3 | Merchandise inventory | 5,500 |
|
| Accounts payable (Sherry Wholesalers) |
| 5,500 |
Jun 4 | Merchandise inventory | 42 |
|
| Cash |
| 42 |
Jun 4 | Merchandise inventory | 1,100 |
|
| Cash |
| 1,100 |
Jun 6 | Accounts payable (Sherry Wholesalers) | 200 |
|
| Merchandise inventory |
| 200 |
Jun 8 | Accounts receivable (Henrich Company) | 4,400 |
|
| Sales revenue |
| 4,400 |
Jun 9 | Merchandise inventory | 4,600 |
|
| Accounts payable (Tex wholesalers) |
| 4,600 |
Jun 10 | Accounts payable (Sherry Wholesalers) [5500-200] | 5,300 |
|
| Merchandise inventory (5300*3%) |
| 159 |
| Cash |
| 5,141 |
Jun 12 | Cash | 4,312 |
|
| Sales discount (4400*2%) | 88 |
|
| Accounts receivable (Henrich Company) |
| 4,400 |
Jun 13 | Accounts payable (Tex wholesalers) | 300 |
|
| Merchandise inventory |
| 300 |
Jun 15 | Accounts receivable (Jarvis company) | 1,500 |
|
| Sales revenue |
| 1,500 |
Jun 22 | Accounts payable (Tex wholesalers) [4600-300] | 4,300 |
|
| Cash |
| 4,300 |
Jun 23 | Sales returns and allowances | 100 |
|
| Accounts receivable (Jarvis company) |
|
|
Jun 25 | Accounts receivable (Smith) | 700 |
|
| Sales revenue |
| 700 |
Jun 29 | Cash | 679 |
|
| Sales discount (700*3%) | 21 |
|
| Accounts receivable (Smith) |
| 700 |
Jun 30 | Cash | 1,400 |
|
| Accounts receivable (Jarvis company) [1500-100] |
| 1,400 |