BUSINESS AND FINANCE

Mountain View also recorded the return of defective merchandise with the following entry.
Date General Journal Debit Credit
May 20   Sales Returns and Allowances 250
          Accounts Receivable—Anna Page 250
      Customer returned (worthless) merchandise.

 
1. Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer’s account.

 

 

 

 

 

2. Post the sales journal amounts first and then any portion of the general journal entry that affects these accounts. Dates may not be chronological in the general ledger accounts.
Prepare a schedule of accounts receivable.

7)

[The following information applies to the questions displayed below.]

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

 

Apr. 2 Purchased $16,000 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60.
3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,800 (cost is $2,900).
3 Purchased $1,450 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM.
4 Issued Check No. 587 to World View  for advertising expense, $906.
5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,500 (cost is $6,700).
6 Received an $95 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3.
9 Purchased $12,545 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM.
11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $11,900 (cost is $7,700).
12 Issued Check No. 588 to Noth Company in payment of its April 2 invoice, less the discount.
13 Received payment from Page Alistair for the April 3 sale, less the discount.
13 Sold $10,900 of merchandise on credit to Page Alistair (cost is $3,000), Invoice No. 763.
14 Received payment from Paula Kohr for the April 5 sale, less the discount.
16 Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $9,850. Cashed the check and paid employees.
16 Cash sales for the first half of the month are $59,410 (cost is $44,300). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.)
17 Purchased $11,900 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30.
18 Borrowed $67,000 cash from First State Bank by signing a long-term note payable.
20 Received payment from Nic Nelson for the April 11 sale, less the discount.
20 Purchased $980 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM.
23 Received a $1,200 credit memorandum from Grant Company for the return of defective merchandise received on April 17.
23 Received payment from Page Alistair for the April 13 sale, less the discount.
25 Purchased $11,650 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60.
26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice, less the return and the discount.
27 Sold $3,140 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,620).
27 Sold $6,800 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,940).
30 Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $9,850.
30 Cash sales for the last half of the month are $73,500 (cost is $62,400).

 

Assume that Wiset Co. uses the perpetual inventory system

 

 

Review the transactions of Wiset Company and enter those that should be journalized in the sales journal.

 

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