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%]
