Chapter 5 Accounting for Merchandise Operations 255Aug. 16 Sold merchandise on account to Westpack Co., $12,000, terms FOB shipping point,
1/10, n/30. The cost of merchandise sold was $7,200.
18 Issued credit memorandum for $3,000 to Westpack Co. for merchandise returned
from sale on August 16. The cost of the merchandise returned was $1,800.
19 Sold merchandise on account to DeGroot Co., $9,500, terms FOB shipping point, 1/10,
n/30. Added $200 to the invoice for transportation costs prepaid. The cost of mer-
chandise sold was $5,700.
26 Received check for amount due from Westpark Co. for sale on August 16 less credit
memorandum of August 18 and discount.
27 Received $7,680 from American Express for $8,000 of sales reported August 1–12.
28 Received check for amount due from DeGroot Co. for sale of August 19.
31 Received check for amount due from McNutt Co. for sale of August 4.
31 Paid Fast Delivery Service $1,050 for delivering merchandise during August to
customers under shipping terms of FOB destination.
Sept. 3 Paid First City Bank $850 for service fees for handling MasterCard sales during August.
15 Paid $4,100 to state sales tax division for taxes owed on August sales.Instructions
Journalize the entries to record the transactions of Holistic Supply Co.The following selected transactions were completed by Daffodil Company during March of the
current year:Mar. 1 Purchased merchandise from Fastow Co., $16,000, terms FOB destination, n/30.
3 Purchased merchandise from Moss Co., $9,000, terms FOB shipping point, 2/10,
n/eom. Prepaid transportation costs of $150 were added to the invoice.
4 Purchased merchandise from Picadilly Co., $7,500, terms FOB destination, 2/10, n/30.
6 Issued debit memorandum to Picadilly Co. for $1,000 of merchandise returned from
purchase on March 4.
13 Paid Moss Co. for invoice of March 3, less discount.
14 Paid Picadilly Co. for invoice of March 4, less debit memorandum of March 6 and
discount.
19 Purchased merchandise from Reardon Co., $12,000, terms FOB shipping point, n/eom.
19 Paid transportation charges of $500 on March 19 purchase from Reardon Co.
20 Purchased merchandise from Hatcher Co., $8,000, terms FOB destination, 1/10, n/30.
30 Paid Hatcher Co. for invoice of March 20, less discount.
31 Paid Fastow Co. for invoice of Marth 1.
31 Paid Reardon Co. for invoice of March 19.Instructions
Journalize the entries to record the transactions of Daffodil Company for March.The following were selected from among the transactions completed by Girder Company dur-
ing November of the current year:Nov. 3 Purchased merchandise on account from Whiting Co., $20,000, terms FOB destina-
tion, 2/10, n/30.
4 Sold merchandise for cash, $7,100. The cost of the merchandise sold was $4,150.
5 Purchased merchandise on account from Alamosa Co., $10,500, terms FOB shipping
point, 2/10, n/30, with prepaid transportation costs of $300 added to the invoice.
6 Returned $5,000 of merchandise purchased on November 3 from Whiting Co.
11 Sold merchandise on account to Bowles Co., $1,800, terms 1/10, n/30. The cost of the
merchandise sold was $1,050.
13 Paid Whiting Co. on account for purchase of November 3, less return of November 6
and discount.Alternate Problem
5-4B
Purchase-related transactions
Goals4, 5
GENERAL LEDGER
Alternate Problem
5-5B
Sales-related and purchase-
related transactions
Goals3, 4, 5, 6
GENERAL LEDGER