8PGB
Question
Journalize the following transactions that occurred in March 2018 for Faucet. Assume Faucet uses the gross method to record sales revenue. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name.
Mar. 3 Purchased merchandise inventory on account from Sidecki Wholesalers, \(3,500. Terms 2/15, n/EOM, FOB shipping point.
4 Paid freight bill of \)75 on March 3 purchase.
4 Purchased merchandise inventory for cash of \(2,200.
6 Returned \)800 of inventory from March 3 purchase.
8 Sold merchandise inventory to Harvey Company, \(5,700, on account. Terms 2/15, n/35. Cost of goods, \)2,508.
9 Purchased merchandise inventory on account from Teaton Wholesalers, \(6,000. Terms 2/10, n/30, FOB destination.
10 Made payment to Sidecki Wholesalers for goods purchased on March 3, less return and discount.
13 After negotiations, received a \)100 allowance from Teaton Wholesalers.
15 Sold merchandise inventory to Jackson Company, \(2,900, on account. Terms n/EOM. Cost of goods, \)1,276.
22 Made payment, less allowance, to Teaton Wholesalers for goods purchased on March 9.
25 Sold merchandise inventory to Secker for \(2,000 on account that cost \)880. Terms of 2/10, n/30 were offered, FOB shipping point. As a courtesy to Secker, $85 of freight was added to the invoice for which cash was paid by Faucet.
28 Received payment from Harvey Company.
29 Received payment from Secker, less discount.
30 Received payment from Jackson Company.
Step-by-Step Solution
VerifiedThe total of debits and credits is $47,139.
In accounting, accounts payable denotes the suppliers who provide goods and services on credit to the business. It also indicates that the amount is payable to those suppliers and is reported under the current liabilities section of the balance sheet.
Date | Accounts and Explanation | Debit ($) | Credit ($) |
Mar 3 | Merchandise inventory | 3,500 |
|
| Accounts payable (Sidecki) |
| 3,500 |
Mar 4 | Freight-in | 75 |
|
| Cash |
| 75 |
Mar 4 | Merchandise inventory | 2,200 |
|
| Cash |
| 2,200 |
Mar 6 | Accounts payable (Sidecki) | 800 |
|
| Merchandise inventory |
| 800 |
Mar 8 | Accounts receivable (Harvey) | 5,700 |
|
| Sales revenue |
| 5,700 |
Mar 8 | Cost of goods sold | 2,508 |
|
| Merchandise inventory |
| 2,508 |
Mar 9 | Merchandise inventory | 6,000 |
|
| Accounts payable (Teaton) |
| 6,000 |
Mar 10 | Accounts payable (3500-800) | 2,700 |
|
| Merchandise inventory (2700*2%) |
| 54 |
| Cash |
| 2,646 |
Mar 13 | Accounts payable (Teaton) | 100 |
|
| Purchase returns and allowances |
| 100 |
Mar 15 | Accounts receivable (Jackson) | 2,900 |
|
| Sales revenue |
| 2,900 |
Mar 15 | Cost of goods sold | 1,276 |
|
| Merchandise inventory |
| 1,276 |
Mar 22 | Accounts payable (Teaton) [6000-100] | 5,900 |
|
| Merchandise inventory (5900*2%) |
| 118 |
| Cash |
| 5,782 |
Mar 25 | Accounts receivable (Secker) | 2,880 |
|
| Sales revenue |
| 2,000 |
| Cash |
| 880 |
Mar 28 | Cash | 5,700 |
|
| Accounts receivable (Harvey) |
| 5,700 |
Mar 29 | Cash | 1,960 |
|
| Sales discount (2000*2%) | 40 |
|
| Accounts receivable (Secker) [2880-880] |
| 2,000 |
Mar 30 | Cash | 2,900 |
|
| Accounts receivable (Jackson) |
| 2,900 |