Liabelity Management
- Pages: 2
- Word count: 254
- Category: Management
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Order NowTravel Warehouse distributes suitcases to retail stores and extends credit term of 1/10, n/30. Travel’s inventory consists of 40 suitcases purchased at $30 each. During The month of July the following merchandising transactions occurred. July 1,Purchased 50 suitcases $30 each on account from Suitcases Manufacturer. FOB Destination, terms 1/15, n/30. The appropriate party paid $100 for the freight.
3Sold 40 suitcases on account to Luggage world for $50 each.
9Paid Suitcases Manufacturer in full.
12Received payment in full from luggage World.
17Sold 30 suitcases on account to Travel Spot for $50 each.
18Purchased 60 suitcases for $1700 on account from Vacation Manufacturer. FOB Shipping point. terms 1/15, n/30. The appropriate party paid $100 for the freight. 20Received $300 credit (including freight) for 10 suitcases returned to Vacation Manufacturers.
21 Received payment in full from Travel Spot.
22Sold 40 suitcases on account to Vacation-Are-Us for $50 each.
30 Paid Vacation Manufacturer in full.
31Granted $250 credit for 5 suitcases returned costing 150.
Instruction:
Journalize the transactions for the month of July using a perpetual inventory system.
Travel Warehouse
Journal
DateParticularRefDr.Cr.
1-Jul
Merchandise Inventory 1500
Accounts Payable 1500
3-Jul
Accounts Receivable 2000
Sales 2000
3-Jul
Cost of Goods Sold 1200
Merchandise Inventory 1200
9-Jul
Accounts Payable 1500
Purchase Discount 15
Cash 1485
12-Jul
Cash 1980
Sales Discount 20
Accounts Receivable 2000
17-Jul
Accounts Receivable 1500
Sales 1500
17-Jul
Cost of Goods Sold 900
Merchandise Inventory 900
18-Jul
Merchandise Inventory 1800
Accounts Payable 1800
20-Jul
Accounts Payable 300
Merchandise Inventory 300
21-Jul
Cash 1485
Sales Discount 15
Accounts Receivable 1500
22-Jul
Accounts Receivable 2000
Sales 2000
22-Jul
Cost of Goods Sold 1200
Merchandise Inventory 1200
30-Jul
Accounts Payable 1500
Cash 1470
Purchase Discount 30
31-Jul
Sales Returned and Allowances 250
Accounts Receivable 250
31-Jul
Merchandise Inventory 150
Cost of Goods Sold 150
Total1930019300
