The following selected transactions were completed by Capers Company during October of the current year:
Oct.
1. Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30.
3. Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice.
4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.
Oct.
13. Paid Hoagie Co. for invoice of October 3.
14. Paid Taco Co. for invoice of October 4 less debit memo of October 6.
19. Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.
19. Paid freight of $400 on October 19 purchase from Veggie Co.
20. Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.
30. Paid Caesar Salad Co. for invoice of October 20.
31. Paid UK Imports Co. for invoice of October 1.
31. Paid Veggie Co. for invoice of October 19.
Instructions
Journalize the entries to record the transactions of Capers Company for October.
Answer:
Oct. 1 Merchandise Inventory14,448
Accounts Payable—UK Imports Co. 14,448
3 Merchandise Inventory 9,971
Accounts Payable—Hoagie Co.9,971
[$9,950 – ($9,950 × 2%)] + $220
4 Merchandise Inventory13,377
Accounts Payable—Taco Co.13,377
[$13,650 – ($13,650 × 2%)]
6 Accounts Payable—Taco Co. 4,459
Merchandise Inventory4,459
[$4,550 – ($4,550 × 2%)]
13 Accounts Payable—Hoagie Co. 9,971
Cash9,971
14 Accounts Payable—Taco Co. 8,918
Cash8,918
($13,377 – $4,459)
19 Merchandise Inventory27,300
Accounts Payable—Veggie Co.27,300
19 Merchandise Inventory400
Cash400
20 Merchandise Inventory21,780
Accounts Payable—Caesar Salad Co. 21,780
[$22,000 – ($22,000 × 1%)]
30 Accounts Payable—Caesar Salad Co. 21,780
Cash21,780
31 Accounts Payable—UK Imports Co. 14,448
Cash14,448
31 Accounts Payable—Veggie Co. 27,300
Cash27,300