The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system.
Jan. 2 Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30.
5 Paid freight of $190 on the January 2 purchase.
6 Returned $2,750 of the merchandise purchased on January 2.
13 Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of goods sold was $22,400.
15 Paid freight of $215 for the merchandise sold on January 13.
17 Paid for the purchase of January 2 less the return and discount.
23 Received payment on account for the sale of January 13 less the discount.
Journalize the entries to record the transactions of Air Systems Company.

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Tundexi Tundexi · Answer 1 · 2020-10-14T05:42:19+02:00

Answer:

Date Account Titles and Explanation Debit Credit

2-Jan Purchase $18,200

Accounts payable $18,200

5-Jan Freight In $190

Cash $190

6-Jan Accounts payable $2,750

Purchased return and allowance $2,750

13-Jan Account receivable $37,300

Sales $37,300

Cost of goods sold $22,400

Merchandise Inventory $22,400

15-Jan Delivery expenses $215

Cash $215

17-Jan Account payable $15,450

Purchase discount $309

Cash $15,141

23-Jan Cash $36,927

Sales discount $373

Account receivables $37,300

The amount of cash received = $37,300 - {$37,300*1%} = 36,927

The amount of sale discount = $37,300 - $ 36,927 = $373