Answer:
3 Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 30%, terms FOB destination, 2/10, n/30.
Dr Merchandise inventory 61,054
Cr Accounts payable - Moonlight Co. 61,054
4 Sold merchandise for cash, $38,210. The cost of the goods sold was $20,810.
Dr Cash 38,210
Cr Sales revenue 38,210
Dr Cost of goods sold 20,810
Cr Merchandise inventory 20,810
5 Purchased merchandise on account from Papoose Creek Co., $51,550, terms FOB shipping point, 2/10, n/30, with prepaid freight of $730 added to the invoice.
Dr Merchandise inventory 50,533.60
Cr Accounts payable - Papoose Creek 50,533.60
6 Returned $14,000 ($20,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co.
Dr Accounts payable - Moonlight Co. 13,720
Cr Merchandise inventory 13,720
8 Sold merchandise on account to Quinn Co., $15,010 with terms n/15. The cost of the goods sold was $10,190.
Dr Accounts receivable - Quinn Co. 15,010
Cr Sales revenue 15,010
Dr Cost of goods sold 10,190
Cr Merchandise inventory 10,190
13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
Dr Accounts payable - Moonlight Co. 47,334
Cr Cash 47,334
14 Sold merchandise on VISA, $231,570. The cost of the goods sold was $142,060.
Dr Accounts receivable - VISA 231,570
Cr Sales revenue 231,570
Dr Cost of goods sold 142,060
Cr 142,060
15 Paid Papoose Creek Co. on account for purchase of November 5.
Dr Accounts payable - Papoose Creek 50,533.60
Cr Cash 50,533.60
23 Received cash on account from sale of November 8 to Quinn Co.
Dr Cash 15,010
Cr Accounts receivable - Quinn Co. 15,010
24 Sold merchandise on account to Rabel Co., $54,800, terms 1/10, n/30. The cost of the goods sold was $33,850.
Dr Accounts receivable - Rabel Co. 54,252
Cr Sales revenue 54,252
Dr Cost of goods sold 33,850
Cr Merchandise inventory 33,850
28 Paid VISA service fee of $3,580.
Dr Credit card expense 3,580
Dr Cash 227,990
Cr Accounts receivable - VISA 231,570
When credit card payments are not immediate, you must first record an accounts receivable. The credit card expense fee must be recorded when the cash is deposited by the credit card company.
30 Paid Quinn Co. a cash refund of $6,420 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,140.
Dr Sales returns and allowances 6,420
Cr Cash 6,420
Dr Merchandise inventory 3,140
Cr Cost of goods sold 3,140
