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Merchandising transactions.
ABC Company distributes merchandises to retail stores. During the month of July, the following merchandising transactions were occurred.
July 1: Purchased 600 units of merchandises on account from XYZ Manufacturers, FOB destination, terms 2/10, n/30. The merchandise has a list price of Birr 150 per unit with the trade discount of 20%. The appropriate party also made a cash payment of Birr 800 for freight on this date.
3: Sold merchandises on account to Satchel World for Birr 8,200. The cost of merchandises sold was Birr 5,400.
9: Paid XYZ Manufacturers in full.
12: Received payment in full from Satchel World.
17: Sold merchandises on account to Lady GoGo for Birr 5,400 which is subject to a sales tax of 15%. The cost of the merchandises sold was Birr 4,030.
18: Purchased merchandises on account for Birr 3,900 from Holiday Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of Birr 750 for freight on this date.
20: Received Birr 900 credit for merchandises returned to Holiday Manufacturers.
21: Received payment in full from Lady GoGo.
22: Sold merchandises on account to Vagabond for Birr 6,400. The cost of merchandises sold was Birr 4,300.
30: Paid Holiday Manufacturers in full.
31: Granted Vagabond Birr 400 credit for merchandises returned costing Birr 280.
Instructions
Journalize the transactions for the month of July for ABC Company using:
Perpetual inventory system
Periodic inventory system

Respuesta :

anthougo

Journalizing the transactions for the month of July for ABC Company using the perpetual and periodic inventory systems is as follows:

Journal Entries under the Perpetual Method:

July 1: Debit Inventory Birr 72,000

Credit Accounts Payable (XYZ Manufacturers) Birr 72,000

FOB destination, terms 2/10, n/30. The merchandise has a list price of Birr 150 per unit with a trade discount of 20%.

July 3: Debit Accounts Receivable (Satchel World) Birr 8,200

Credit Sales Revenue Birr 8,200

Debit Cost of goods sold Birr 5,400

Credit Inventory Birr 5,400

July 9: Debit Accounts Payable (XYZ Manufacturers) Birr 72,000

Credit Cash Birr 70,560

Credit Cash Discounts Birr 1,440

July 12: Debit Cash Birr 8,200

Credit Accounts Receivable (Satchel World) Birr 8,200

July 17: Debit Accounts Receivable (Lady GoGo) Birr 6,210

Credit Sales Revenue Birr 5,400

Credit Sales Tax Payable Birr 810

Subject to a sales tax of 15%.

Debit Cost of goods sold Birr 4,030

Credit Inventory Birr 4,030

July 18: Debit Inventory Birr 3,900

Credit Accounts Payable (Holiday Manufacturers) Birr 3,900

FOB shipping point, terms 1/10, n/30.

Debit Freight-in Birr 750

Credit Cash Birr 750

July 20: Debit Accounts Payable (Holiday Manufacturers) Birr 900

Credit Inventory Birr 900

For merchandise returned to Holiday Manufacturers.

July 21: Debit Cash Birr 6,210

Credit Accounts Receivable (Lady GoGo) Birr 6,210

July 22: Debit Accounts Receivable (Vagabond) Birr 6,400

Credit Sales Revenue Birr 6,400

Debit Cost of goods sold Birr 4,300

Credit Inventory Birr 4,300

July 30: Debit Accounts Payable (Holiday Manufacturers) Birr 3,000

Credit Cash Birr 3,000

July 31: Debit Sales Returns Birr 400

Credit Accounts Receivable (Vagabond) Birr 400

Debit Inventory Birr 280

Credit Cost of goods sold Birr 280

For merchandises returned costing Birr 280.

Journal Entries under the Periodic Method:

July 1: Debit Purchases Birr 72,000

Credit Accounts Payable (XYZ Manufacturers) Birr 72,000

FOB destination, terms 2/10, n/30. The merchandise has a list price of Birr 150 per unit with a trade discount of 20%.

July 3: Debit Accounts Receivable (Satchel World) Birr 8,200

Credit Sales Revenue Birr 8,200

July 9: Debit Accounts Payable (XYZ Manufacturers) Birr 72,000

Credit Cash Birr 70,560

Credit Cash Discounts Birr 1,440

July 12: Debit Cash Birr 8,200

Credit Accounts Receivable (Satchel World) Birr 8,200

July 17: Debit Accounts Receivable (Lady GoGo) Birr 6,210

Credit Sales Revenue Birr 5,400

Credit Sales Tax Payable Birr 810

Subject to a sales tax of 15%.

July 18: Debit Purchases Birr 3,900

Credit Accounts Payable (Holiday Manufacturers) Birr 3,900

FOB shipping point, terms 1/10, n/30.

Debit Freight-in Birr 750

Credit Cash Birr 750

July 20: Debit Accounts Payable (Holiday Manufacturers) Birr 900

Credit Purchases Return Birr 900

For merchandise returned to Holiday Manufacturers.

July 21: Debit Cash Birr 6,210

Credit Accounts Receivable (Lady GoGo) Birr 6,210

July 22: Debit Accounts Receivable (Vagabond) Birr 6,400

Credit Sales Revenue Birr 6,400

July 30: Debit Accounts Payable (Holiday Manufacturers) Birr 3,000

Credit Cash Birr 3,000

July 31: Debit Sales Returns Birr 400

Credit Accounts Receivable (Vagabond) Birr 400

Transaction Analysis under the Perpetual Method:

July 1: Inventory Birr 72,000 Accounts Payable (XYZ Manufacturers) Birr 72,000

FOB destination, terms 2/10, n/30. The merchandise has a list price of Birr 150 per unit with a trade discount of 20%.

July 3: Accounts Receivable (Satchel World) Birr 8,200 Sales Revenue Birr 8,200

Cost of goods sold Birr 5,400 Inventory Birr 5,400

July 9: Accounts Payable (XYZ Manufacturers) Birr 72,000 Cash Birr 70,560 Cash Discounts Birr 1,440

July 12: Cash Birr 8,200 Accounts Receivable (Satchel World) Birr 8,200

July 17: Accounts Receivable (Lady GoGo) Birr 6,210 Sales Revenue Birr 5,400 Sales Tax Payable Birr 810

Subject to a sales tax of 15%.

Cost of goods sold Birr 4,030 Inventory Birr 4,030

July 18: Inventory Birr 3,900 Accounts Payable (Holiday Manufacturers) Birr 3,900 FOB shipping point, terms 1/10, n/30.

Freight-in Birr 750 Cash Birr 750

July 20: Accounts Payable (Holiday Manufacturers) Birr 900 Inventory Birr 900 For merchandise returned to Holiday Manufacturers.

July 21: Cash Birr 6,210 Accounts Receivable (Lady GoGo) Birr 6,210

22: Accounts Receivable (Vagabond) Birr 6,400 Sales Revenue Birr 6,400

Cost of goods sold Birr 4,300 Inventory Birr 4,300

July 30: Accounts Payable (Holiday Manufacturers) Birr 3,000 Cash Birr 3,000

July 31: Sales Returns Birr 400 Accounts Receivable (Vagabond) Birr 400

Inventory Birr 280 Cost of goods sold Birr 280

For merchandises returned costing Birr 280.

Transaction Analysis under the Periodic Method:

Similar with some minor differences.

Learn more about journalizing business transactions at https://brainly.com/question/17201601

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