The following selected transactions were completed by Niles Co. during March of the current year:
Mar.
1. Purchased merchandise from Haas Co., $43,250, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $650 was added to the invoice.
5. Purchased merchandise from Whitman Co., $19,175, terms FOB destination, n/30.
10. Paid Haas Co. for invoice of March 1.
13. Purchased merchandise from Jost Co., $15,550, terms FOB destination, 2/10, n/30.
14. Issued debit memo to Jost Co. for $3,750 of merchandise returned from purchase on March 13.
Mar.
18. Purchased merchandise from Fairhurst Company, $13,560, terms FOB shipping point, n/eom.
18. Paid freight of $140 on March 18 purchase from Fairhurst Company.
19. Purchased merchandise from Bickle Co., $6,500, terms FOB destination, 2/10, n/30.
23. Paid Jost Co. for invoice of March 13 less debit memo of March 14.
29. Paid Bickle Co. for invoice of March 19.
31. Paid Fairhurst Company for invoice of March 18.
31. Paid Whitman Co. for invoice of March 5.
Instructions
Journalize the entries to record the transactions of Niles Co. for March.
Answer:
Mar. 1 Merchandise Inventory43,035
Accounts Payable—Haas Co.43,035
[$43,250 – ($43,250 × 2%)] + $650
5 Merchandise Inventory19,175
Accounts Payable—Whitman Co.19,175
10 Accounts Payable—Haas Co. 43,035
Cash43,035
13 Merchandise Inventory15,239
Accounts Payable—Jost Co.15,239
[$15,550 – ($15,550 × 2%)]
14 Accounts Payable—Jost Co. 3,675
Merchandise Inventory3,675
[$3,750 – ($3,750 × 2%)]
18 Merchandise Inventory13,560
Accounts Payable—Fairhurst Company 13,560
18 Merchandise Inventory140
Cash140
19 Merchandise Inventory6,370
Accounts Payable—Bickle Co.6,370
[$6,500 – ($6,500 × 2%)]
23 Accounts Payable—Jost Co. ($15,239 – $3,675) 11,564
Cash11,564
29 Accounts Payable—Bickle Co. 6,370
Cash6,370
31 Accounts Payable—Fairhurst Company 13,560
Cash13,560
31 Accounts Payable—Whitman Co. 19,175
Cash19,175
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