Business Accounting Accounting Homework Merchandising Operations
Enter the following transactions in the journal for the month of September:
Sept. 3 Purchased $1,900 of inventory on account under terms of 2/10 n/eom (end of month) and FOB shipping point.
7 Returned $300 of defective merchandise purchased on September 3.
9 Paid freight bill of $30 on September 3 purchase.
10 Sold inventory on account for $3,100. Payment terms were 3/15 n/30. These goods cost the business $1,700.
12 Paid amount owed on credit purchase of September 3, less the discount and the return.
16 Granted a sales allowance of $800 on the September 10 sale.
23 Received cash from September 10 customer in full settlement of her debt, less allowances and the discount.
Supply the missing income statement amounts:
Motorola Systems earned sales revenue of $55 million in 20X4. Cost of Goods sold was $33 million, and net income reached $8 million. Total current assets included inventory of $6 million at December 31, 20X4. Last year's ending inventory was $4 million. The managers of Motorola need to know the company's gross profit percentage and rate of inventory turnover for 20X4. Compute these amounts.
Assume the following transactions occurred between Walgreen Co., the pharmacy chain, and Procter & Gamble (P&G), the consumer products company, during June of the current year:
June 8 P&G sold $6,000 worth of merchandise to Walgreen on terms of 2/10 n/30, FOB shipping point. P&G prepaid freight charges of $200 and included this amount in the invoice total. (P&G's entry to record the freight payment debits Accounts Receivable and credits Cash.) These goods cost P&G $2,100.
11 Walgreen returned $1,000 of the merchandise purchased on June 8. P&G accounted for the sales return and placed the goods back in inventory (P&G's cost, $400).
17 Walgreen paid $2,000 of the invoice amount owed to P&G for the June 8 purchase, less the discount. The payment included none of the freight charge.
26 Walgreen paid the remaining amount owed to P&G for the June 8 purchase.
Place these transactions in the journal. First on the books of Walgreen Co. and, second, on the books of Procter & Gamble.
