Sales-Related and Purchase-Related Transactions for Seller andBuyer Using Perpetual Inventory SystemThe following selected transactions...Sales-Related...

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Accounting

Sales-Related and Purchase-Related Transactions for Seller andBuyer Using Perpetual Inventory System
The following selected transactions were completed during Aprilbetween Swan Company and Bird Company:
Apr.2. Swan Company sold merchandise on account to Bird Company,$13,700, terms FOB shipping point, 2/10, n/30. Swan Company paidfreight of $290, which was added to the invoice. The cost of themerchandise sold was $8,600.
8. Swan Company sold merchandise on account to Bird Company,$31,000, terms FOB destination, 1/15, n/30. The cost of themerchandise sold was $18,600.
8. Swan Company paid freight of $740 for delivery of merchandisesold 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 defectivemerchandise in the April 2 purchase. Bird Company agreed to keepthe merchandise.
23. Bird Company paid Swan Company for purchase of April 8.
24. Swan Company sold merchandise on account to Bird Company,$9,300, terms FOB shipping point, n/45. The cost of the merchandisesold was $5,600.
26. Bird Company paid freight of $280 on April 24 purchase fromSwan Company.
30. Swan Company granted a customer allowance (credit memo) to BirdCompany for $11,300 for merchandise that was returned from theAugust 24 purchase. The cost of the merchandise returned was$6,500.
Required:
1. Journalize the April transactions for BirdCompany (the buyer).
Date Account Debit Credit
Apr. 2 Merchandise Inventory
Accounts Payable-Swan Company
Date Account Debit Credit
Apr. 8 Merchandise Inventory
Accounts Payable-Swan Company
Date Account Debit Credit
Apr. 12 Accounts Payable-Swan Company
Cash
Date Account Debit Credit
Apr. 18 Cash
Merchandise Inventory
Date Account Debit Credit
Apr. 23 Accounts Payable-Swan Company
Cash
Date Account Debit Credit
Apr. 24 Merchandise Inventory
Accounts Payable-Swan Company
Date Account Debit Credit
Apr. 26 Merchandise Inventory
Cash
Date Account Debit Credit
Apr. 30 Accounts Payable-Swan Company
Merchandise Inventory
2. Journalize the April transactions for SwanCompany (the seller).
Date Account Debit Credit
Apr. 2-sale Accounts Receivable-Bird Company
Sales
Date Account Debit Credit
Apr. 2-freight Accounts Receivable-Bird Company
Cash
Date Account Debit Credit
Apr. 2-cost Cost of Merchandise Sold
Merchandise Inventory
Date Account Debit Credit
Apr. 8-sale Accounts Receivable-Bird Company
Sales
Date Account Debit Credit
Apr. 8-cost Cost of Merchandise Sold
Merchandise Inventory
Date Account Debit Credit
Apr. 8-freight Delivery Expense
Cash
Date Account Debit Credit
Apr. 12 Cash
Accounts Receivable-Bird Company
Date Account Debit Credit
Apr. 18
Cash
Date Account Debit Credit
Apr. 23 Cash
Accounts Receivable-Bird Company
Date Account Debit Credit
Apr. 24-sale Accounts Receivable-Bird Company
Sales
Date Account Debit Credit
Apr. 24-cost Cost of Merchandise Sold
Merchandise Inventory
Date Account Debit Credit
Apr. 30 Customer Refunds Payable
Accounts Receivable-Bird Company
Date Account Debit Credit
Apr. 30 Merchandise Inventory
Estimated Returns Inventory

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4.1 Ratings (677 Votes)

1 Bird Company Date Account Titles Debit Credit Apr02 Inventory 13990 Accounts Payable 13990 Apr08 Inventory 31000 Accounts Payable 31000 Apr12 Accounts Payable 13990 Cash 13716 Inventory 274 Apr18 Cash 2000 See Answer

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In: AccountingSales-Related and Purchase-Related Transactions for Seller andBuyer Using Perpetual Inventory SystemThe following selected transactions...Sales-Related and Purchase-Related Transactions for Seller andBuyer Using Perpetual Inventory SystemThe following selected transactions were completed during Aprilbetween Swan Company and Bird Company:Apr.2.Swan Company sold merchandise on account to Bird Company,$13,700, terms FOB shipping point, 2/10, n/30. Swan Company paidfreight of $290, which was added to the invoice. The cost of themerchandise sold was $8,600.8.Swan Company sold merchandise on account to Bird Company,$31,000, terms FOB destination, 1/15, n/30. The cost of themerchandise sold was $18,600.8.Swan Company paid freight of $740 for delivery of merchandisesold 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 defectivemerchandise in the April 2 purchase. Bird Company agreed to keepthe merchandise.23.Bird Company paid Swan Company for purchase of April 8.24.Swan Company sold merchandise on account to Bird Company,$9,300, terms FOB shipping point, n/45. The cost of the merchandisesold was $5,600.26.Bird Company paid freight of $280 on April 24 purchase fromSwan Company.30.Swan Company granted a customer allowance (credit memo) to BirdCompany for $11,300 for merchandise that was returned from theAugust 24 purchase. The cost of the merchandise returned was$6,500.Required:1. Journalize the April transactions for BirdCompany (the buyer).DateAccountDebitCreditApr. 2Merchandise InventoryAccounts Payable-Swan CompanyDateAccountDebitCreditApr. 8Merchandise InventoryAccounts Payable-Swan CompanyDateAccountDebitCreditApr. 12Accounts Payable-Swan CompanyCashDateAccountDebitCreditApr. 18CashMerchandise InventoryDateAccountDebitCreditApr. 23Accounts Payable-Swan CompanyCashDateAccountDebitCreditApr. 24Merchandise InventoryAccounts Payable-Swan CompanyDateAccountDebitCreditApr. 26Merchandise InventoryCashDateAccountDebitCreditApr. 30Accounts Payable-Swan CompanyMerchandise Inventory2. Journalize the April transactions for SwanCompany (the seller).DateAccountDebitCreditApr. 2-saleAccounts Receivable-Bird CompanySalesDateAccountDebitCreditApr. 2-freightAccounts Receivable-Bird CompanyCashDateAccountDebitCreditApr. 2-costCost of Merchandise SoldMerchandise InventoryDateAccountDebitCreditApr. 8-saleAccounts Receivable-Bird CompanySalesDateAccountDebitCreditApr. 8-costCost of Merchandise SoldMerchandise InventoryDateAccountDebitCreditApr. 8-freightDelivery ExpenseCashDateAccountDebitCreditApr. 12CashAccounts Receivable-Bird CompanyDateAccountDebitCreditApr. 18CashDateAccountDebitCreditApr. 23CashAccounts Receivable-Bird CompanyDateAccountDebitCreditApr. 24-saleAccounts Receivable-Bird CompanySalesDateAccountDebitCreditApr. 24-costCost of Merchandise SoldMerchandise InventoryDateAccountDebitCreditApr. 30Customer Refunds PayableAccounts Receivable-Bird CompanyDateAccountDebitCreditApr. 30Merchandise InventoryEstimated Returns Inventory

Apr.2.	Swan Company sold merchandise on account to Bird Company,$13,700, terms FOB shipping point, 2/10, n/30. Swan Company paidfreight of $290, which was added to the invoice. The cost of themerchandise sold was $8,600.
8.	Swan Company sold merchandise on account to Bird Company,$31,000, terms FOB destination, 1/15, n/30. The cost of themerchandise sold was $18,600.
8.	Swan Company paid freight of $740 for delivery of merchandisesold 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 defectivemerchandise in the April 2 purchase. Bird Company agreed to keepthe merchandise.
23.	Bird Company paid Swan Company for purchase of April 8.
24.	Swan Company sold merchandise on account to Bird Company,$9,300, terms FOB shipping point, n/45. The cost of the merchandisesold was $5,600.
26.	Bird Company paid freight of $280 on April 24 purchase fromSwan Company.
30.	Swan Company granted a customer allowance (credit memo) to BirdCompany for $11,300 for merchandise that was returned from theAugust 24 purchase. The cost of the merchandise returned was$6,500.

Date	Account	Debit	Credit
Apr. 30	Customer Refunds Payable
	Accounts Receivable-Bird Company