Answer to Question #215522 in Accounting for zuby

Question

24 The company purchased merchandise on account at a cost of USD 345,600; terms 2/10, n/30, FOB shipping point, freight collect.

26 The company returned USD 57,600 of the merchandise purchased June 24 to the vendor for credit.

27 A trucking company was paid USD 7,200 for delivery to Rusk Company of the goods purchased June 24.

29 The company sold merchandise on account, USD 384,000; terms 2/10, n/30.

30 Sold merchandise for cash, USD 172,800.

30 Payment was received for the sale of June 15.

30 Paid store rent for June, USD 43,200.

30 Paid the amount due on the purchase of June 24.

The inventory on hand at the close of business June 30 was USD 672,000 at cost.

a. Prepare journal entries for the transactions.

Answer 1

24 Debit goods credit payments to suppliers - 345 600

26 Debit payments to suppliers credit goods - 57 600

27 Debit settlements with the transport company credit settlement account - 7 200

29 Debit settlements with customers credit goods - 384 000

30 Debit cash register credit goods - 172 000

30 Debit current account credit settlements with customers

30 Debit settlements with landlords credit settlement account - 43 000

30 Debit settlements with suppliers credit settlement account - 288 000 (345 600-57 600)