Topics: Generally Accepted Accounting Principles, Balance sheet, Revenue Pages: 13 (1829 words) Published: December 8, 2012
Problem sET A

Problem 4-1A (40 minutes)

Aug. 1Merchandise Inventory6,000
Accounts Payable—Abilene6,000
Purchased goods on credit.

4Accounts Payable—Abilene100
Paid freight for Abilene.

5Accounts Receivable—Lux4,200
Sold goods on credit.

5Cost of Goods Sold3,000
Merchandise Inventory3,000
To record the cost of August 5 sale.

8Merchandise Inventory5,540
Accounts Payable—Welch5,540
Purchased goods on credit.

9Delivery Expense120
Paid shipping charges on August 5 sale.

10Sales Returns and Allowances700
Accounts Receivable—Lux700
Customer returned merchandise.

10Merchandise Inventory500
Cost of Goods Sold500
Returned goods to inventory.

12Accounts Payable—Welch800
Merchandise Inventory800
Received a credit memorandum for August 8 purchase.

Problem 4-1A (Concluded)

Aug. 15Cash3,430
Sales Discounts70
Accounts Receivable—Lux3,500
Collected receivable within 2% discount period.

18Accounts Payable—Welch4,740
Merchandise Inventory*45
Paid payable within discount period
* (1% x [$5,300 - $800])
**([100%-1%] x [$5,300 - $800]) + $240 shipping.

19Accounts Receivable—Trax3,600
Sold goods on credit.

19Cost of Goods Sold2,500
Merchandise Inventory2,500
To record cost of the August 19 sale.

22Sales Returns and Allowances600
Accounts Receivable—Trax600
Issued credit memorandum.

Sales Discounts (1%)30
Accounts Receivable—Trax3,000
Collected receivable within discount period.

30Accounts Payable—Abilene5,900
Paid payable ($6,000 - $100); discount period has expired.

Problem 4-2A (40 minutes)

July 1Merchandise Inventory6,000
Accounts Payable—Black6,000
Purchased goods on credit.

2Accounts Receivable—Coke800
Sold goods on credit.

2Cost of Goods Sold500
Merchandise Inventory500
To record cost of the July 2 sale.

3Merchandise Inventory100
Paid freight on incoming goods.

Sold goods for cash.

8Cost of Goods Sold1,200
Merchandise Inventory1,200
To record cost of the July 8 sale.

9Merchandise Inventory2,300
Accounts Payable—Lane2,300
Purchased goods on credit.

11Accounts Payable—Lane200
Merchandise Inventory200
Received credit memo from returning
goods to supplier.

Sales Discounts (2%)16
Accounts Receivable—Coke800
Collected receivable within the discount period.

Problem 4-2A (Concluded)

July 16Accounts Payable—Black6,000
Merchandise Inventory (1%)60
Paid payable within discount period.

19Accounts Receivable—AKP1,250
Sold goods on credit.

19Cost of Goods Sold900
Merchandise Inventory900
To record cost of the July 19 sale.

21Sales Returns and Allowances150
Accounts Receivable—AKP150
Issued credit memo for allowance on goods sold to customer.

24Accounts Payable—Lane2,100
Merchandise Inventory *42
Paid payable in discount period (*2% x $2,100).

Sales Discounts (2%)22
Accounts Receivable—AKP1,100
Collected receivable within discount period.
[($1,250 - $150) x .02]

31Accounts Receivable—Coke5,000...
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