The following selected transactions were completed during November between Sycamore campany and Bonita campany.
Nov2. Sycamore campany merchandise on account to Bonita campany 16,000 birr, terms shipping point 2/10,n/30. Sycamore campany paid freight of 375 birr which was added to the invoice. The cost of merchandise sold was 10,000 birr.
Nov8. sycamore campany sold merchandise on account to Bonita campany 24,750 birr, terms FOB destination 1/15,n/eom. The cost of merchandise sold was 14,850 birr.
Nov8. Sycamore campany paid freight of 640 birr for delivery of merchandise sold to Bonita campany on Nov8.
Nov12. Bonita campany returned 5,750 birr of merchandise purchase on account on Nov8 from sycamore campany. The cost of merchandise return was 3,000 birr.
Nov12. Bonita campany paid sycamore for purchase Nov2 less discount.
Nov23. Bonita campany paid sycamore campany for purchase of Nov8 discount and less return of Nov12.
Nov24. Sycamore campany sold merchandise on account to Bonita campany 13,200 birr, terms shipping point n/eom. The cost of merchandise Sold was 8,000 birr.
Nov26. Bonita campany paid freight of 290 on Nov24 purchase from sycamore campany.
Nov30. Bonita campany paid sycamore campany in account for Nov24.INSTRUCTION
Journalize the November transactions for (1) sycamore campany (2) Bonita campany using perpetual inventory systems
(1) Sycamore Company:
Nov 2:
Accounts Receivable - Bonita Company 15,625
Sales Revenue 15,625
(To record the sale of merchandise on account)
Nov 2:
Cost of Goods Sold 10,000
Inventory 10,000
(To record the cost of merchandise sold)
Nov 2:
Freight Out 375
Cash 375
(To record the payment of freight)
Nov 8:
Accounts Receivable - Bonita Company 24,750
Sales Revenue 24,750
(To record the sale of merchandise on account)
Nov 8:
Cost of Goods Sold 14,850
Inventory 14,850
(To record the cost of merchandise sold)
Nov 12:
Sales Returns and Allowances 5,750
Accounts Receivable - Bonita Company 5,750
(To record the return of merchandise)
Nov 23:
Accounts Receivable - Bonita Company 17,260
Sales Revenue 17,260
(To record the sale of merchandise on account)
Nov 24:
Cost of Goods Sold 8,000
Inventory 8,000
(To record the cost of merchandise sold)
(2) Bonita Company:
Nov 2:
Inventory 16,000
Accounts Payable - Sycamore Company 16,000
(To record the purchase of merchandise on account)
Nov 8:
Accounts Payable - Sycamore Company 24,750
Inventory 24,750
(To record the purchase of merchandise on account)
Nov 12:
Accounts Payable - Sycamore Company 2,500
Inventory 2,500
(To record the return of merchandise)
Nov 12:
Accounts Payable - Sycamore Company 14,150
Cash 14,150
(To record the payment for the purchase on Nov 2)
Nov 23:
Accounts Payable - Sycamore Company 12,260
Cash 12,260
(To record the payment for the purchase on Nov 8, less return)
Nov 26:
Freight In 290
Accounts Payable - Sycamore Company 290
(To record the payment of freight)
Nov 30:
Accounts Payable - Sycamore Company 13,200
Cash 13,200
(To record the payment for the purchase on Nov 24)
1) Journalize the November transactions for Sycamore Company:
Nov 2:
Accounts Receivable (Bonita Company) 16,000
Sales Revenue 16,000
Inventory 10,000
Cost of Goods Sold 10,000
Nov 8:
Accounts Receivable (Bonita Company) 24,750
Sales Revenue 24,750
Nov 24:
Accounts Receivable (Bonita Company) 13,200
Sales Revenue 13,200
Nov 2:
Accounts Receivable (Bonita Company) 16,000
Freight Expense 375
Sales Revenue 16,375
Nov 8:
Accounts Receivable (Bonita Company) 24,750
Freight Expense 640
Sales Revenue 24,750
Nov 30:
Accounts Receivable (Bonita Company) 13,200
Cash 13,200
2) Journalize the November transactions for Bonita Company:
Nov 2:
Purchases 16,000
Accounts Payable (Sycamore Company) 16,000
Nov 12:
Accounts Payable (Sycamore Company) 10,000
Purchase Returns and Allowances 3,000
Inventory 7,000
Nov 12:
Accounts Payable (Sycamore Company) 6,900
Cash 6,900
Nov 23:
Accounts Payable (Sycamore Company) 9,200
Purchase Returns and Allowances 3,000
Cash 6,200
Nov 26:
Freight Expense 290
Accounts Payable (Sycamore Company) 290
Nov 30:
Accounts Payable (Sycamore Company) 13,200
Cash 13,200