Answer:
Capers Company
Journal Entries:
Oct. 1: Debit Inventory $14,448
Credit Accounts Payable (UK Imports Co.) $14,448
To record the purchase of merchandise, terms FOB destination, n/30.
Oct. 3: Debit Inventory $9,950
Credit Accounts Payable (Hoagie Co.) $9,950
To record the purchase of merchandise, terms FOB shipping point, 2/10, n/eom.
Oct. 4: Debit Inventory $13,650
Credit Accounts Payable (Taco Co.) $13,650
To record the purchase of merchandise, terms FOB destination, 2/10, n/30.
Oct. 6: Debit Accounts Payable (Taco Co.) $4,550
Credit Inventory $4,550
To record the return of goods on account.
Oct. 13: Debit Accounts Payable (Hoagie Co.) $9,950
Credit Cash $9,751
Credit Cash Discounts $199
To record the payment on account.
Oct. 14: Debit Accounts Payable (Taco Co.) $9,100
Credit Cash $8,918
Credit Cash Discounts $182
To record the payment on account.
Oct. 19: Debit Inventory $27,300
Credit Accounts Payable (Veggie Co.) $27,300
To record the purchase of merchandise, terms FOB shipping point, n/eom.
Oct. 19: Debit Freight-in $400
Credit Cash $400
To record the payment of freight-in.
Oct. 20: Debit Inventory $22,000
Credit Accounts Payable (Caesar Salad Co.) $22,000
To record the purchase of merchandise, terms 1/10, n/30.
Oct. 30: Debit Accounts Payable (Caesar Salad Co.) $22,000
Credit Cash $21,780
Credit Cash Discounts $220
To record the payment on account.
Oct. 31: Debit Accounts Payable (UK Imports Co.) $14,448
Credit Cash $14,448
To record the payment on account.
Oct. 31: Debit Accounts Payable (Veggie Co.) $27,300
Credit Cash $27,300
To record the payment on account.
Explanation:
a) Data and Analysis:
Oct. 1: Inventory $14,448 Accounts Payable (UK Imports Co.) $14,448; terms FOB destination, n/30.
Oct. 3: Inventory $9,950 Accounts Payable (Hoagie Co.) $9,950; terms FOB shipping point, 2/10, n/eom.
Oct. 4: Inventory $13,650 Accounts Payable (Taco Co.) $13,650; terms FOB destination, 2/10, n/30.
Oct. 6: Accounts Payable (Taco Co.) $4,550 Inventory $4,550
Oct. 13: Accounts Payable (Hoagie Co.) $9,950 Cash $9,751 Cash Discounts $199
Oct. 14: Accounts Payable (Taco Co.) $9,100 Cash $8,918 Cash Discounts $182
Oct. 19: Inventory $27,300 Accounts Payable (Veggie Co.) $27,300; terms FOB shipping point, n/eom.
Oct. 19: Freight-in $400 Cash $400
Oct. 20: Inventory $22,000 Accounts Payable (Caesar Salad Co.) $22,000; terms 1/10, n/30.
Oct. 30: Accounts Payable (Caesar Salad Co.) $22,000 Cash $21,780 Cash Discounts $220
Oct. 31: Accounts Payable (UK Imports Co.) $14,448 Cash $14,448
Oct. 31: Accounts Payable (Veggie Co.) $27,300 Cash $27,300
