Selected transactions of DBA, Inc, which uses the perpetual inventory system, are shown below....
Question:
Selected transactions of DBA, Inc, which uses the perpetual inventory system, are shown below.
| June 16 | Purchased on account from ABD, $10,000, 1/10, n/30, fob shipping point |
| 16 | Paid carrier to have goods delivered from ABD, $400 |
| 17 | Sold goods on account to DR Company, $8,500, 2/10, n/30; the goods cost the company $4,500. Shipping terms are fob shipping point |
| 19 | DR Company returned goods they were not satisfied with, $500; the goods had a cost of $250 |
| 25 | Received payment from DR Company for the amount due on their account |
| 26 | Made a payment to ABD for the full amount due on their account |
Required:
Journalize each of the following transactions related to inventory for DBA.
Journal Entry:
The documentation of the activities related to the daily transaction is called the journal entry. The entry is employed as further documentation as it is used in posting the ledger in the accounting.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerStatement showing Journal Entry:
| Date | Particulars | Debit | Credit |
| June 16 | Merchandise Inventory | $10,000 | |
| Accounts Payable | $10,000 | ||
| (To record the... |
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Journal Entries and Trial Balance in Accounting
from
Chapter 3 / Lesson 10
36K
Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.
Related to this Question
- Using the perpetual inventory system, journalize the entries for the following selected transactions: a. Sold merchandise on account, for $12,000. The cost of the merchandise sold was $6,500. (3/15,n/45). b. The customer paid within the discount period f
- Presented here are selected transactions for Alpine Tours Inc. during September of the current year. Alpine Tours uses a perpetual inventory system. Sept. 2 Purchased equipment on account for $25,630, terms n/30, FOB destination. 3 Freight charges of $660
- Presented here are selected transactions for the Crane Company during April. Crane uses the perpetual inventory system. April 1 Sold merchandise to Mann Company for $6,300, terms 2/10, n/30. The merchandise sold had a cost of $3,000 2 Purchased merchandis
- The following are selected transactions of Wilson Inc.: April 20. Sold on account to Acme Stores merchandise for $900 Terms FOB shipping point 2/10, n/30. The freight charges Paid were $85. Merchandi
- The following are selected transactions of Diesel, Inc.: May 10 Diesel sold and shipped on account to Macy, Inc. merchandise for $25,000, with a cost of $16,250 May 12 Shipping costs of $2,000 were paid. The terms of the sale were FOB Destination May 16 M
- The following selected transactions were completed during August between Salem Company and Boulder Co.: Aug. 1. Salem Company sold merchandise on account to Boulder Co., $28,600, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $17
- Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012, were as follows: Journalize these transactions with calculations shown. h. Purchased 36,000
- The following selected transactions were completed during June between Snipes Company and Beejoy Company. |June 8|Snipes Company sold merchandise on account to Beejoy Company, $18 250 terms FOB destination, 2/15, n/eom. The cost of the merchandise sold wa
- The following selected transactions were completed by Lorimer Company during August of the current year. Lorimer Company uses the periodic inventory system. Aug. 3. Purchased $24,500 of merchandise on account, FOB shipping point, terms 2/10, n/30. 4. Pa
- Journalize the following inventory merchandise transactions for the Seller and the Buyer, assuming that both uses the perpetual inventory system. Dec. 1 Seller sold merchandise on account to the buyer
- The following are selected transactions of Wilson Inc; April 20. Sold on account to Acme Stores merchandise for $900 Terms FOB shipping point 2/10. N/30. The freight charges paid were $8.5, Merchandi
- Under a perpetual inventory system, acquisition of merchandise for resale is debited to a. the Inventory account. b. the Purchases account. c. the Supplies account. d. the Cost of Goods Sold account.
- X sold Y merchandise on account FOB shipping point, 3/10, net 30, for $10,000. X prepaid the $200 shipping charge. Using the perpetual inventory method, which of the following entries will Y make if Y pays within the discount period? a. Dr. Accounts Payab
- In May the following selected transactions were completed. All purchases and sales were on account except as indicated. The cost of all merchandise sold was 65% of the sales price. May 2 Purchased merchandise from Younger Company $7,500. 3 Received freigh
- 1) Under a perpetual inventory system, acquisition of merchandise for resale is debited to the: A) Inventory account. B) Purchases account. C) Supplies account. D) Cost of Goods sold the account.
- Under a perpetual inventory system, acquisition of merchandise for resale is debited to the: a. Merchandise Inventory account. b. Purchases account. c. Supplies account. d. Cost of Goods Sold account.
- A company purchased $10,100 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge was $550 and was prepaid by the seller. On June 20, it returned $880 of that merchandise. On June 24, it paid the balance owed for t
- A company purchased $11,800 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge was $1,400 and was prepaid by the sellers. On June 20, it returned $2,240 of that merchandise. On June 24, it paid the balance owed
- A company purchased $10,200 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping points. The freight charge was $600 and was prepaid by the seller. On June 20, it returned $960 of that merchandise. On June 24, it paid the balance owed for
- Journalize the August transactions for Beartooth Co. The following selected transactions were completed during August between Summit Co. and Beartooth Co.: |Aug.1|Summit Co. sold merchandise on acco
- Eastland Company maintains a perpetual inventory system. On June 5, Eastland purchased 1,000 inventory units at $3 each, on account. On June 9, Eastland sold 500 units for $7 each, on account. Eastland's inventory method assessed the cost of units sold as
- A company purchased inventory for $1,100 per unit. The company later sold one unit of the inventory for cash of $1,800. Under the perpetual inventory system, which accounts will be debited to record the sale?
- Sage Inc. experienced the following transactions for 2018, its first year of operations: 1. Issued common stock for $50,000 cash 2. Purchased $140,000 of merchandise on account. 3. Sold merchandise
- The following selected accounts are taken from the ledger of XYX Merchandising on June 30, 2017: Sales P550,000 Sales discount 5% Gross profit P209,000 Operating expenses P150,000 Merchandise inventory, Jan. 1, 2017, P75,000 Merchandise inventory, June 30
- Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore paid freight of $
- Journalize the following transactions assuming the perpetual inventory system: July 3- Sold merchandise on account $3,750. The cost of the merchandise sold was $2,000; July 5- Issued credit memo for $
- The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account : June 1 : Balance 25 units at $60 June 6 : Sale 20 units June 8 : Purchase
- Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system? a. Purchases b. Freight-in c. Cost of Goods Sold d. Purchase Discounts
- Presented below are transactions related to Bramble Corp. On December 3, Bramble Corp. sold $668,300 of merchandise on account to Flounder Co., terms 2/10, n/30, FOB shipping point. The cost of the me
- Your Corporation uses a LIFO perpetual inventory system. On August 2, 10 units were purchased at $12 per unit. August 18, 15 units were purchased at $14 per unit. On August 29, 12 units were sold. What was the balance in ending inventory after this sale?
- Ace Inc. is a merchandiser which uses the perpetual inventory system. It had the following transactions occur during September: Sept 1: Purchased inventory costing $8,000 on account, terms 3/15, n/30.
- What account is debited when the completely manufactured goods are transferred out of the work in process inventory? a. Raw Materials inventory b. Goods in Process inventory c. Finished Goods inventory d. Cost of Goods Sold
- A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise (its cost is $2,400) to a customer on credit terms of 3/10, n/30. Prepare two journal entries to record the sales transaction. The first journal entry is to record
- Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used. 1. Purchased on account $2,500 of merchandise on May 2, 2016. 2. Retur
- The following selected transactions were completed during June between Salinas Company and Brokaw Company: June 2. Salinas Company sold merchandise on account to Brokaw Company, $20,000, terms FOB shipping point, 2/10, n/30. Salinas Company paid freight o
- The following selected transactions were completed during August between Summit Co. and Beartooth Co.: Aug. 1 Summit Co. sold merchandise on account to Beartooth Co., $47,600, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $27,76
- 1. The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug.1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB dest
- if a purchaser using a perpetual system agrees to freight terms of fob shipping point, then the: a. merchandise inventory account will be increased. b. merchandise inventory account will not be affected. c. carrier will bear the freight cost. d. seller wi
- The following selected transactions were completed during August between Summit Co. and Beartooth Co.: Aug. 1 Summit Co. sold merchandise on account to Beartooth Co., $49,550, terms FOB destinatio
- Journalize the following Transactions. Nov. 3 Purchased merchandise on account from Moonlight Co., list price $88,000, trade discount 20%, terms FOB destination, 2/ 10, n/30. 4 Sold merchandise for c
- X Company, a merchandiser, started business on June 1. The following were June transactions: 1. Received $93,000 from a group of investors. 2. Bought $8,986 of merchandise, $3,410 for cash, and $5,576 on account. 3. Sold merchandise for $20,200, of which
- Your Corporation uses a FIFO perpetual inventory system. August 2 10 units were purchased at $12 per unit. August 18 15 units were purchased at $14 per unit. August 29 12 units were sold. What was th
- The cost of goods sold account on a company's books is the amount of goods: Select one: a. left in a company's inventory account at year-end and classified as ending inventory. b. inventory purchased during the year plus goods sold. c. inventory sold duri
- During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: (perpetual inventory system) June 3 Purchased goods for $6,900 from Diamond Inc.
- The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.) Feb. 1 Issued
- Some of the transactions of Kingbird Company during August are listed below. Kingbird uses the periodic inventory method August 10 Purchased merchandise on account, $10,700, terms 2/10, n/30. 13 Retur
- At the beginning of April, the ledger of Rose showed Cash of $9,000 and Common Stock of $9,000. Rose Company completed these transactions in April. Apr. 2 Purchased merchandise on account from Kwon Supply Co. $6,900, terms 1/10, n/30. 4 Sold merchandise o
- The following selected transactions were completed during August between Summit Company and Beartooth Co. Aug 1 Summit Company sold merchandise on account to Beartooth Co, $48,000, terms FOB destinat
- The following selected transactions were completed during August between Summit Company and Beartooth Co: Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destina
- The following selected transactions were complete by Britt Co. during October of the current year: Oct. 1 Purchased merchandise from Mable Co., $17,500, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $300 was added to the invoice. 5. Purchased
- Our company uses a perpetual inventory system. On July 3, we sold merchandise with a cost of $3,000 for $6,500 to a customer on account. The terms of the sale were 2/10, n/30. What account and amount would we credit to record the sales revenue for this tr
- A company using the perpetual inventory system purchased inventory worth 21,000 on account with terms of 3/10, \ n/30 . Defective inventory of 1,000 was returned two days later, and the accounts were appropriately adjusted. If the invoice is paid
- Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2014. Inventory (finished goods) $ 52,640 Cost of Goods Sold $2,143,000 Unearned Service Revenue 96,770 Notes Receiva
- Sep.3 Purchased merchandise inventory on account from Simmon Wholesalers, $6,000. Terms 1/15, n/EOM, FOB shipping point. 4 Paid freight bill of $65 on September 3 purchase 4 Purchase merchandise in
- Given the following selected account balances of Shanta Company. Sales $1,298,000 Raw materials inventory, Dec 31, 2012 37,000 Goods in process inventory, Dec 31, 2012 53,400 Finished goods inventory
- The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1. Summit Company sold merchandise on account to Beartooth Co., $48,000 terms FOB desti
- The following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account, $14,000, terms FOB shipping point, n/eom. The cost of
- Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore Co. paid freight of $1,800. Journalize the entries for Shore and Blue Star for the sale, purchase, and pa
- Given the following, prepare the entries that both the purchaser and seller should record for these transactions. Assume both companies use a perpetual inventory system. a. April 12: Benson Inc.'s merchandise was sold to ABC Inc. for $1,800 under credit
- The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: June 1 Balance 25 units at 60$ 6 Sale 20 units 8 Purchase 20 units at 61$ 16 Sale 10 units 20 Purchase 20 units at $62 23 Sale 25 uni
- Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Roley purchased $66,000 of inventory, terms 2/10, n/30, FOB shipping point. Roley paid freight costs of $1,210. On July 3, Roley retur
- A company purchased $11,200 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1,100, was added to the invoice amount. On June 20, it returned $1,760 of that merchandise. On June 24, it paid the balance owed f
- The following selected transactions were completed by Epic Co. during August of the current year: Aug. 3. Purchased merchandise for $33,400, terms FOB destination, 2/10, n/30. 9. Issued debit memorand
- The following selected transactions were complete by Burton Company during July of the current year. Burton Company uses the periodic inventory system. July 2. Purchased $24,000 of merchandise on account, FOB shipping point, terms 2/15, n/30. 5. Paid fre
- Some of the transactions of Crane Company during August are listed below. Crane uses the periodic inventory method. August 10 Purchased merchandise on account, $12,500, terms 2/10, n/30. August 13 R
- Some of the transactions of Ayayai Company during August are listed below. Ayayai uses the periodic inventory method. August 10 Purchased merchandise on account, $13,000, terms 2/10, n/30. 13 Returne
- The following selected transactions were completed by Silvergate Co. during May of the current year: May 3. Purchased merchandise for, $16,000, terms FOB destination, 2/10, n/30. 6. Issued debit memorandum for $4,000 of merchandise returned from a purcha
- The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $49,050, terms FOB destin
- Some of the transactions of Wildhorse Company during August are listed below. Wildhorse uses the periodic inventory method. August 10 Purchased merchandise on account, $11,900, terms 2/10, n/30. 13 R
- Suppose NEC Sales Co. engaged in the following transactions during June of the current year: June 3 Purchased inventory RM1,600 on credit terms of 2/10, net 30. 6 Returned 40% of the inventory purchased on June 3. It was defective. 9 Sold goods for cash,
- Ace Co. purchased inventory that cost $10,000 under terms 2/10, n/30. The inventory was delivered under terms of FOB destination. Freight costs of $500 were paid in cash. Ace paid for the inventory within 10 days. Ace sold the goods on account of $13,000,
- Given the following selected account balances of Shanta Company. Sales $1,460,000 Raw materials inventory, Dec. 31, 2012, $38,000 Goods in process inventory, Dec. 31, 2012, $56,200 Finished goods inventory, Dec. 31, 2012, $68,000 Raw materials purchases $
- For the following transaction, determine whether the account in the parenthesis is to be debited or credited. Sold merchandise (Merchandise inventory): 1000
- Journalize the following transactions for Armour Inc. using both the periodic inventory system and the perpetual inventory system. Oct.7 Sold merchandise on credit to Rondo Distributors, terms n/30,
- Some of the transactions of Cullumber Company during August are listed below. Cullumber uses the periodic inventory method. August 10 Purchased merchandise on account, $12,300, terms 2/10, n/30. 13
- Following are the selected account balances of Randa Company: Sales $1,252,000 Raw materials inventory, Dec. 31, 2010 39,000 Goods in process inventory, Dec. 31, 2010 55,900 Finished goods inventory, Dec. 31, 2010 64,750 Raw materials purchases 177,600 Di
- Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $1
- The following selected transactions were completed during May between Sky Company and Big Co.: May 1 Sky Company sold merchandise on account to Big Co., $72,000, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $43,200 2 Sky Compan
- The following transactions occurred during January 2018: Jan.1 Sold merchandise for cash, $2,900. The cost of the merchandise was $1,400. The company uses the perpetual inventory system. 2 Purchased
- A company purchased $10,900 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge was $950. On June 20, It returned $1,520 of that merchandise. On June 24, It paid the balance owed for the merchandise taking any di
- During October, Beidleman Inc. transferred $64,100 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $69,210. The journal entries to record these transactions would include
- A company purchased $11,400 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping points. The freight charge, of $1,200, was added to the invoice amount. On June 20, it returned $1,920 of that merchandise. On June 24, it paid the balance ow
- For Rigoletto Corp. and Villanuevo, Inc., the following transactions occurred during the month of April: a. On April 1, Rigoletto Corp. purchased merchandise on account from Villanuevo, Inc. with credit terms of 2/10, n/30. The selling price of the mercha
- From the following transactions of Phoenix Inc for Oct 2016. Date Transactions Oct. 1, 2016 Niel started the business with cash of $800,000 Oct. 2, 2016 Purchased goods worth $3,000 Oct. 15, 2016 Sold goods for $25,000 Oct. 18, 2016 Purchased stationeries
- Following are the selected account balances of Delray Mfg: Sales $1,200,000 Raw materials inventory, Dec. 31,2014 40,000 Work in process inventory, Dec.31,2014 55,600 Finished goods inventory, Dec.31
- Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of me
- Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of $6,450,000. Ranns engaged in the following transactions during the year: 1. Purchased me
- Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of 6,450,000. Ranns engaged in the following transactions during the year: 1. Purchased mer
- The inventory system that uses the merchandise inventory account as an active account and updates it with every purchase and sale is called: a. LIFO b. perpetual c. FIFO d. Periodic
- Some of the transactions of Flounder Company during August are listed below. Flounder uses the periodic inventory method. August: 10 Purchased merchandise on account, $13,700, terms 2/10, n/30. 13
- Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a begining balance of $6,450,000. Ranns engaged in the following transactions during the year: 1. Purchased mer
Explore our homework questions and answers library
Browse
by subject