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MERCHANDISING ACOUNTING bink an his brother Paul opened Blink's Partnership Company Merchandising business on July 1. The company applies the perpetual inventory system July1 Joe and Paul each invest $90,000 cash in a new partnership 1 Purchased merchandise form Boden Company for $9,000 under credit terms of 2 Purchased used truck from Carter for $14,000, paying $3,000 cash and the balance 2 Sold merchandise that cost $6,500 to Rivera's Co. for $13,000 under credit terms of 2/10, 1/15, n/30, FOB shipping point, invoice dated July 1 On account. n/60 FOB shipping point, Invoice dated July 2, subject to a 9% sales tax. 2 Received $7,054 in advance for merchandise to take place on July 12 Bink's asked Carter, Co. to accept a 60-day, 15% note to replace its existing account payable to Carter. Paid $725 cash for freight charges on the purchase of July 1 4. 4. Paid $6,800 cash on one-year insurance policy effective July 1 4- Bink's issued a $350,000, 4-year, 12% note at face value to Forest Hills Bank and received $350,000 cash. The note requires annual interest payments each December 31. Bink's pays the note plus interest to Carter. (July 3) Bink's borrows $175,000 from American Bank. The note bears interest at 9% per year. Principal and interest are due in 30 days. Sold merchandise that cost $1,800 to customers for $4,500 cash,FOB shipping point. Invoice dated July12, subject to a 9% sales tax. 5- 6 8. 12 Sold merchandise that cost $7,000 to Rivera's Co. for $9,000 cash received on July 2 Invoice dated July12, subject to a 9% sales tax

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