Prepare journal entries to record the following merchandising transactions of Zhang's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 3 Paid $1,285 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $4,500 for $7,500 cash. July 9 Purchased merchandise from Clinton Company for $5,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 July 11 Returned $1,000 of merchandise purchased on July 9 from Clinton Company and debited its account payable for that amount. July 16 Paid the balance due to Turner Company within the discount period. July 19 Sold merchandise that cost $4,900 to Thompson Company for $7,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,400 to Thompson Company for merchandise sold on July 19 and credited Thompson's accounts receivable for that amount. July 24 Paid Clinton Company the balance due, net of discount. July 30 Received the balance due from Thompson Company for the invoice dated July 19, net of discount.

Prepare journal entries to record the following merchandising transactions of Zhang's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 3 Paid $1,285 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $4,500 for $7,500 cash. July 9 Purchased merchandise from Clinton Company for $5,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 July 11 Returned $1,000 of merchandise purchased on July 9 from Clinton Company and debited its account payable for that amount. July 16 Paid the balance due to Turner Company within the discount period. July 19 Sold merchandise that cost $4,900 to Thompson Company for $7,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,400 to Thompson Company for merchandise sold on July 19 and credited Thompson's accounts receivable for that amount. July 24 Paid Clinton Company the balance due, net of discount. July 30 Received the balance due from Thompson Company for the invoice dated July 19, net of discount.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...

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