P5-31A Journalizing purchase and sale transactionsJournalize the following transactions that occurred in September 2015 forAquamarines. No explanations are needed. Identify each accounts payable andaccounts receivable with the vendor or customer name.Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $5,000.Terms 1/15, n/EOM, FOB shipping point.4 Paid freight bill of $80 on September 3 purchase.4 Purchased merchandise inventory for cash of $1,700.6 Returned $500 of inventory from September 3 purchase.8 Sold merchandise inventory to Hermosa Company, $6,000, on account. Terms2/15, n/35. Cost of goods, $2,640.9 Purchased merchandise inventory on account from Thomas Wholesalers,$8,000. Terms 2/10, n/30, FOB destination.10 Made payment to Shallin Wholesalers for goods purchased on September 3,less return and discount.12 Received payment from Hermosa Company, less discount.13 After negotiations, received a $200 allowance from Thomas Wholesalers.15 Sold merchandise inventory to Jordan Company, $2,500, on account. Terms1/10, n/EOM. Cost of goods, $1,050.22 Made payment, less allowance, to Thomas Wholesalers for goods purchased onSeptember 9.23 Jordan Company returned $400 of the merchandise sold on September 15.Cost of goods, $160.25 Sold merchandise inventory to Smithsons for $1,100 on account that cost$400. Terms of 2/10, n/30 were offered, FOB shipping point. As a courtesy toSmithsons, $75 of freight was added to the invoice for which cash was paid byAquamarines.26 After negotiations, granted a $100 allowance to Smithsons for merchandisepurchased on September 25.29 Received payment from Smithsons, less allowance and discount.30 Received payment from Jordan Company, less return.
P5-31A student template.xls
Accounts and Explanation
Available accounts for journal entries:Merchandise InventoryAccounts Payable—Shallin WholesalersMerchandise InventoryCashMerchandise InventoryCashAccounts Payable—Shallin WholesalersMerchandise InventoryAccounts Receivable—Hermosa CompanySales RevenueCost of Goods SoldMerchandise InventoryMerchandise InventoryAccounts Payable—Thomas WholesalersAccounts Payable—Shallin WholesalersCashMerchandise InventoryCashSales DiscountsAccounts Receivable—Hermosa CompanyAccounts Payable—Thomas WholesalersMerchandise InventoryAccounts Receivable—Jordan CompanySales RevenueCost of Goods SoldMerchandise InventoryAccounts Payable—Thomas WholesalersCashSales Returns and AllowanceAccounts Receivable—Jordan CompanyMerchandise InventoryCost of Goods SoldAccounts Receivable—SmithsonsSales Revenue
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