Answer:
Journal Entries:
Sep. 3:
Debit Inventory $7,500
Credit Accounts Payable (Silton Wholesalers) $7,500
To record the purchase of merchandise on account.
Sep. 4:
Debit Freight on Inventory $50
Credit Cash Account $50
To record freight on purchase.
Sep. 4:
Debit Inventory $2,000
Credit Cash Account $2,000
To record the purchase of merchandise for cash.
Sep. 6:
Debit Accounts Payable (Silton Wholesalers) $1,100
Credit Inventory $1,100
To record the return of inventory.
Sep. 8:
Debit Accounts Receivable (Houston Company) $6,100
Credit Sales Revenue $6,100
To record the sale of merchandise on account.
Sep. 13:
Debit Accounts Payable (Tristan Wholesalers) $100
Credit Inventory $100
To record the allowance received.
Sep. 15:
Debit Accounts Receivable (Jex Company) $2,900
Credit Sales Revenue $2,900
To record the sale of merchandise on account.
Sep. 22:
Debit Accounts Payable (Tarin Wholesalers) $
Credit Cash $
For alleged goods purchased on September 9 (not in the records).
Sep. 23:
Debit Inventory $230
Debit Sales Revenue $270
Credit Accounts Receivable (Jex Company) $500
To record inventory returned and the corresponding profit on sales.
Sep. 29:
Debit Cash Account $
Credit Accounts Receivable (Smede) $
To record receipt from Smede (not in the records).
Sep. 30:
Debit Cash Account $2,400
Accounts Receivable (Jex Company) $2,400
To record receipt from Jex Company in full settlement.
Explanation:
Company B uses the journal entries to initially record business transactions as they occur on a daily basis. They show the accounts to be debited and the ones to be credited.
