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question p5 1b journalizepurchase and sales transactions under a perpetual inventory 4292354

Question

P5-1B Journalizepurchase and sales transactions under a perpetual inventorysystem

 

 

Urdan Co. distributessuitcases to retail stores and extends credit terms of 1/10, n/30to all of its customers. 

At the end of June, Urdan'sinventory consisted of suitcases costing $1,200. During the monthof July,

the following merchandisingtransactions occurred.

 

 

 

 

 

   July 1

Purchased suitcases on account for $1,800 fromHostad Manufacturers, FOB destination,

 

terms 2/10, n/30. The appropriate party also made acash payment of $100 for freight

 

 

on this date.

 

 

 

 

 

 

 

 

         3

Sold suitcases on account to Kaye Satchels for$2,000. The cost of suitcases sold is $1,200.

         9

Paid Hostad Manufacturers in full.

 

 

 

 

 

 

      12

Received payment in full from Kaye Satchels.

 

 

 

 

 

      17

Sold suitcases on account to The Going Concern for$1,800. the cost of the suitcases sold

 

was $1,080.

 

 

 

 

 

 

 

 

      18

Purchased suitcases on account for $1,900 fromNelson Manufacturers, FOB shipping point,

 

terms 1/10,n/30. The appropriate party also made acash payment of $125 for freight

 

 

on this date.

 

 

 

 

 

 

 

 

      20

Received $300 credit (including freight) forsuitcases returned to Nelson Manufacturers.

 

      21

Received payment in full from The GoingConcern.

 

 

 

 

      22

Sold suitcases on account to Wopat's for $2,250.the cost of suitcases sold was $1,350.

 

      30

Paid Nelson Manufacturers in full.

 

 

 

 

 

 

      31

Granted Wopat's $200 credit for suitcases returnedcosting $120.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Urdan's chart of accountsincludes the following: No.101 Cash, No.112 AccountsReceivable,

 

No.120 Inventory, No. 201Accounts Payable, No. 401 Sales Revenue, No.412 Sales Returns andAllowances, No. 414

Sales Discounts, and No. 595Cost of Goods Sold.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Instructions

 

 

 

 

 

 

 

 

 

Journalize the transactionsfor the month of July for Urdan using a perpetual inventorysystem.

 

NOTE: Enter a number in cellsrequesting a value; enter either a number or a formula in cellswith a “?” .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

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