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Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System

The following selected transactions were completed during April between Swan Company and Bird Company:

Apr.2.	Swan Company sold merchandise on account to Bird Company, $32,000, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $330, which was added to the invoice. The cost of the merchandise sold was $19,200.
8.	Swan Company sold merchandise on account to Bird Company, $49,500, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $29,700.
8.	Swan Company paid freight of $710 for delivery of merchandise sold to Bird Company on April 8.
12.	Bird Company paid Swan Company for purchase of April 2.
18.	Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise.
23.	Bird Company paid Swan Company for purchase of April 8.
24.	Swan Company sold merchandise on account to Bird Company, $67,350, terms FOB shipping point, n/45. The cost of the merchandise sold was $40,400.
26.	Bird Company paid freight of $875 on April 24 purchase from Swan Company.
30.	Swan Company granted a customer allowance (credit memo) to Bird Company for $11,300 for merchandise that was returned from the August 24 purchase. The cost of the merchandise returned was $6,500.

Required:

1. Journalize the April transactions for Bird Company (the buyer).

Date	Account	Debit	Credit
Apr. 2	Merchandise Inventory	fill in the blank 2
	Accounts Payable-Swan Company		fill in the blank 4

Date	Account	Debit	Credit
Apr. 8	Merchandise Inventory	fill in the blank 6
	Accounts Payable-Swan Company		fill in the blank 8

Date	Account	Debit	Credit
Apr. 12	Accounts Payable-Swan Company	fill in the blank 10
	Cash		fill in the blank 12

Date	Account	Debit	Credit
Apr. 18	Cash	fill in the blank 14
	Merchandise Inventory		fill in the blank 16

Date	Account	Debit	Credit
Apr. 23	Accounts Payable-Swan Company	fill in the blank 18
	Cash		fill in the blank 20

Date	Account	Debit	Credit
Apr. 24	Merchandise Inventory	fill in the blank 22
	Accounts Payable-Swan Company		fill in the blank 24

Date	Account	Debit	Credit
Apr. 26	Merchandise Inventory	fill in the blank 26
	Cash		fill in the blank 28

Date	Account	Debit	Credit
Apr. 30	Accounts Payable-Swan Company	fill in the blank 30
	Cash		fill in the blank 32

2. Journalize the April transactions for Swan Company (the seller).

Date	Account	Debit	Credit
Apr. 2-sale	Merchandise Inventory	fill in the blank 34
	Sales		fill in the blank 36

Date	Account	Debit	Credit
Apr. 2-freight	Accounts Receivable-Bird Company	fill in the blank 38
	Cash		fill in the blank 40

Date	Account	Debit	Credit
Apr. 2-cost	Cost of Merchandise Sold	fill in the blank 42
	Merchandise Inventory		fill in the blank 44

Date	Account	Debit	Credit
Apr. 8-sale	Accounts Receivable-Bird Company	fill in the blank 46
			fill in the blank 48

Date	Account	Debit	Credit
Apr. 8-cost	Cost of Merchandise Sold	fill in the blank 50
	Merchandise Inventory		fill in the blank 52

Date	Account	Debit	Credit
Apr. 8-freight	Delivery Expense	fill in the blank 54
	Cash		fill in the blank 56

Date	Account	Debit	Credit
Apr. 12	Cash	fill in the blank 58
	Accounts Receivable-Bird Company		fill in the blank 60

Date	Account	Debit	Credit
Apr. 18	Cash	fill in the blank 62
	Accounts Receivable-Bird Company		fill in the blank 64

Date	Account	Debit	Credit
Apr. 23	Cash	fill in the blank 66
	Accounts Receivable-Bird Company		fill in the blank 68

Date	Account	Debit	Credit
Apr. 24-sale	Accounts Receivable-Bird Company	fill in the blank 70
	Sales		fill in the blank 72

Date	Account	Debit	Credit
Apr. 24-cost	Cost of Merchandise Sold	fill in the blank 74
	Merchandise Inventory		fill in the blank 76

Date	Account	Debit	Credit
Apr. 30	Customer Refunds Payable	fill in the blank 78
	Merchandise Inventory		fill in the blank 80

Date	Account	Debit	Credit
Apr. 30	Cash	fill in the blank 82
	Estimated Returns Inventory		fill in the blank 84

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