The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system.

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 merchandise 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.

Answer:

Jan. 2 Purchases18,200

Accounts Payable18,200

5 Freight In190

Cash190

6 Accounts Payable2,750

Purchases Returns and Allowances2,750

13 Accounts Receivable [$37,300 – ($37,300 × 1%)] 36,927

Sales36,927

15 Delivery Expense215

Cash215

17 Accounts Payable15,450

Purchases Discounts*309

Cash15,141

23 Cash36,927

Accounts Receivable36,927

* [($18,200 – $2,750) × 2%]