Prepare journal entries to record the following merchandising transactions of Blink Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.
July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, and invoice dated July 1.
July 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, and invoice dated July 2. The merchandise had cost $500.
July 3 Paid $125 cash for freight charges on the purchase of July 1
July 8 Sold merchandise that had cost $1,300 for $1,700 cash.
July 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, and invoice dated July 9.
July 11 received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.
July 12 received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
July 16 paid the balance due to Boden Company within the discount period.
July 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, and invoice dated July 19.
July 21 issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.
July 24 Paid Leight Co. the balance due after deducting the discount
July 30 received the balance due from Art Co. for the invoice dated July 19, net of discount.
July 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, and invoice dated July 31.
SubjectsAccounting | Anatomy | Anthropology | Art and Architecture | Astronomy | Auditing | Biochemistry | Biology | Business Law | Business Management | Business Studies | Chemistry | Economics | English | Earth Science | Computer Science | Essay Writing | Finance | Gender Studies | Hospitality Management | HR Management | Humanities | Law | Management | Marketing | Math | Mathematics | Mechanical Engineering | Medical Science | Nursing | Operations Management | Other Engineering | Other Subjects | Philosophy | Physics | Physiology | Political science | Psychology | Sociology | Statistics | Taxation | Web Development | Writing Assignments