90.2K

Verified Solution

Link Copied!

Q1. Northern Co. and Job-done Co. are two business partners. They exchange merchandise throughout the year. Both companies have completed the following transactions. You are required to journalize those transactions for both companies using perpetual system. (2 marks) Mar. 7 Northern sold merchandise on credit to Job-done, terms n/30, for $3000 cost $1800. Mar. 8 Northern purchased merchandise on credit from Job-done company terms 2/15, days n/30, FOB shipping point for $6000 and $2000 cost. Transportation cost of $700 was paid in cash. Mar. 10 Northern return damaged merchandise received from Job-done company on March 8 for credit $600 $200 cost. Mar. 11 Job-done paid Northern in full for the transaction on March 7th. Mar. 13 Northern paid Job-done for the transaction on March 8th. Mar. 17 Job-done sold merchandise on account $5,500, terms 1/5, n/10 the cost of the merchandise sold was $4,100. Mar. 18 Northern sold merchandise on account $3,700, terms 1/5, n/30. The cost of merchandise sold was $2,800 to Job-done company. Job-done received collections in full less discounts from Northern company on March Mar. 21 17th Mar. 22 Northern received refund from Job-done for returned goods on the purchase of March 18th $500, cost $150. Mar. 28 Northern received cash from Job-done for the transaction on March 18th

Answer & Explanation Solved by verified expert

See Answer