Question

July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19. 24 Paid Leight Co. the balance due after deducting the discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system.

Answer 1

Answer:

Journal Entries are as below

Directive or Autocratic Decision Making:

Managers who embed such style assess few alternatives and consider limited information while taking any decision. They are intuitive and impulsive, do not find it important to consult with others or seek information in any form and use their cognitive process and idea while taking decisions.

BLINK COMPANY    

JOURNAL    

PERPETUAL INVETORY SYSTEM [AMOUNT IN $]    

   

DATE PARTICULARS     INVOICE DATE DR. CR.

Jul-01 PURCHASE A/C     Jul-01  6,000  

1/15,N/30  PAYABLE A/C {BODEN CO.}      6,000

Jul-02 A/C RECIEVABLE {CREEK CO.}   Jul-02  900  

                                      SALES      900

2/10,N/60    

COST OF GOODS SOLD      500  

   INVENTORY        500

Jul-03 CARRIAGE INWARDS A/C   Jul-01  125  

                                       CASH A/C      125

Jul-08 CASH A/C       1,700  

                                        SALES A/C     1,700

COST OF GOODS SOLD      1,300  

                                        INVENTORY     1,300

Jul-09 PURCHASE A/C     Jul-09  2,200  

                                        PAYABLE A/C {LEIGHT CO.}   2,200

2/15,N/60    

Jul-11 PAYABLE A/C {LEIGHT CO.}   Jul-09  200  

                                         INVENTORY     200

Jul-12 BANK A/C     Jul-02  882  

DISCOUNT ALLOWED      18  

                                          A/C RECIEVABLE {CREEK CO.}   900

Jul-16 PAYABLE A/C {BODEN CO.}   Jul-01  6,000  

                                           BANK A/C     5,940

                                           DISCOUNT RECEIVED    60

Jul-19 A/C REVIEVABLE {ART CO.}     1,200  

                                            SALES      1,200

2/15,N/60    

COST OF GOODS SOLD      800  

                                             INVENTORY     800

Jul-21 SALES RETURN A/C    Jul-19  200  

                                             A/C RECIEVABLE {ART CO.}   200

INVENTORY       134  

                                             COST OF GOOD SOLD    134

Jul-24 PAYABLE A/C {LEIGHT CO.}     2,000  

                                              BANK A/C      1,960

                                              DISCOUNT RICEIVED    40

Jul-30 BANK A/C     Jul-19  980  

DISCOUNT ALLOWED      20  

                                               A/C RECIEVABLE {ART CO.}   1,000

Jul-31 A/C RECIEVABLE {CREEK CO.}   Jul-31  7,000  

                                                SALES     7,000

2/16,N/60    

COST OF GOODS SOLD      4,800  

                                                 INVENTORY     4,800

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