2 Merchandising Transactions In-Class Exercises:Exercise No PageMerchandise purchases
3 Merchandise Purchases Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory system.Apr. 2 Purchased merchandise from Blue Company under the following terms: $3, price, invoice dated April 2, credit terms of 2/15,n/60, and FOB shipping point.3 Paid $200 for shipping charges on the April 2 purchase.4 Returned to Blue Company unacceptable merchandise that had an invoice price of $600.17 Sent a check to Blue Company for the April 2 purchase, net of the discount and the returned merchandise.18 Purchased merchandise from Fox Corp. under the following terms: $7,500 price, invoice dated April 18, credit terms of 2/10,n/30, and FOB destination.21 After negotiations, received from Fox a $2,100 allowance on the April 18 purchase.28 Sent check to Fox paying for the April 18 purchase, net of the discount and allowance.
7 Seller TransactionsExercise No PageSeller transactions only
8 Seller TransactionsTaos Company purchased merchandise for resale from Tuscon Company with an invoice price of $22,000 and credit terms of 3/10, n/60. The merchandise had cost Tuscon $15,000. Taos paid within the discount period. Assume that Tuscon uses a perpetual inventory System.Prepare entries that the seller (Tuscon) should record for:a. The sale.b. The cash collection.
9 Seller TransactionsDiscount ($22,000 x 3% = $660)