Q34PGA
Question
Journalize the following transactions that occurred in September 2018 for Aquamarines. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Aquamarines estimates sales returns at the end of each month.
Sep. 3 Purchased merchandise inventory on account from Sharpner Wholesalers, \(5,500. Terms 2/15, n/EOM, FOB shipping point.
4 Paid freight bill of \)85 on September 3 purchase.
4 Purchased merchandise inventory for cash of \(1,600.
6 Returned \)1,300 of inventory from the September 3 purchase.
8 Sold merchandise inventory to Herman Company, \(5,700, on account. Terms 2/15, n/35. Cost of goods, \)2,565.
9 Purchased merchandise inventory on account from Tucker Wholesalers, \(6,000. Terms 3/10, n/30, FOB destination.
10 Made payment to Sharpner Wholesalers for goods purchased on September 3, less return and discount.
12 Received payment from Herman Company, less discount.
13 After negotiations, I received a \)500 allowance from Tucker Wholesalers.
15 Sold merchandise inventory to Jerome Company, \(2,800, on account. Terms n/EOM. Cost of goods, \)1,200.
22 Made payment, less allowance, to Tucker Wholesalers for goods purchased on September 9.
23 Jerome Company returned \(200 of the merchandise sold on September 15. Cost of goods, \)80.
25 Sold merchandise inventory to Small for \(1,800 on account that cost \)738. Terms of 3/10, n/30 was offered, FOB shipping point. As a courtesy to Small, $40 of freight was added to the invoice, for which Aquamarines paid cash.
29 Received payment from Small, less discount.
30 Received payment from Jerome Company, less return.
Step-by-Step Solution
VerifiedThe total of debits and credits is $49,908.
Accounts receivable denotes the customer to whom a business concern sold goods or provided services on credit. Accounts receivables also indicate the amount receivable by the company and are reported on the current asset section of the balance sheet.
Date | Accounts and Explanation | Debit ($) | Credit ($) |
Sep 3 | Merchandise inventory | 5,500 |
|
| Accounts payable (Sharpner Wholesalers) |
| 5,500 |
Sep 4 | Merchandise inventory | 85 |
|
| Cash |
| 85 |
Sep 4 | Merchandise inventory | 1,600 |
|
| Cash |
| 1,600 |
Sep 6 | Accounts payable (Sharpner Wholesalers) | 1,300 |
|
| Merchandise inventory |
| 1,300 |
Sep 8 | Accounts receivable (Herman company) | 5,700 |
|
| Sales revenue |
| 5,700 |
Sep 8 | Cost of goods sold | 2,565 |
|
| Merchandise inventory |
| 2,565 |
Sep 9 | Merchandise inventory | 6,000 |
|
| Accounts payable (Tucker wholesaler) |
| 6,000 |
Sep 10 | Accounts payable (Sharpner wholesalers) [5500-1300] | 4,200 |
|
| Merchandise inventory (4200*2%) |
| 84 |
| Cash |
| 4,116 |
Sep 12 | Cash | 5,586 |
|
| Discount (5700*2%) | 114 |
|
| Accounts receivable (Herman company) |
| 5,700 |
Sep 13 | Accounts payable (Tucker Wholesalers) | 500 |
|
| Purchase returns and allowances |
| 500 |
Sep 15 | Accounts receivable (Jerome company) | 2,800 |
|
| Sales revenue |
| 2,800 |
Sep 15 | Cost of goods sold | 1,200 |
|
| Merchandise inventory |
| 1,200 |
Sep 22 | Cash (6000-500) | 5,500 |
|
| Accounts payable (Tucker wholesalers) |
| 5,500 |
Sep 23 | Sales returns and allowances | 200 |
|
| Accounts receivable (Jerome company) |
| 200 |
Sep 23 | Merchandise inventory | 80 |
|
| Cost of goods sold |
| 80 |
Sep 25 | Accounts receivable (Small) | 1,800 |
|
| Sales |
| 1,800 |
Sep 25 | Cost of goods sold | 778 |
|
| Merchandise inventory |
| 738 |
| Cash |
| 40 |
Sep 29 | Cash | 1,746 |
|
| Discount (1800*3%) | 54 |
|
| Accounts receivable (Small) |
| 1,800 |
Sep 30 | Cash (2800-200) | 2,600 |
|
| Accounts receivable (Jerome company) |
| 2,600 |