Reference no: EM131533123

Question: Prepare journal entries to record the following merchandising transactions of Bask Company, which applies the perpetual inventory system.

(Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Black.)

July 1 Purchased merchandise from Black Company for $6,000 under credit terms of 1y15, ny30, FOB shipping point, invoice dated July 1.

2 Sold merchandise to Coke Co. for $800 under credit terms of 2y10, ny60, FOB shipping point, invoice dated July 2. The merchandise had cost $500.

3 Paid $100 cash for freight charges on the purchase of July 1.

8 Sold merchandise that had cost $1,200 for $1,600 cash.

9 Purchased merchandise from Lane Co. for $2,300 under credit terms of 2y15, ny60, FOB destination, invoice dated July 9.

11 Received a $200 credit memorandum from Lane Co. for the return of part of the merchandise purchased on July 9.

12 Received the balance due from Coke Co. for the invoice dated July 2, net of the discount.

16 Paid the balance due to Black Company within the discount period.

19 Sold merchandise that cost $900 to AKP Co. for $1,250 under credit terms of 2y15, ny60, FOB shipping point, invoice dated July 19.

21 Issued a $150 credit memorandum to AKP Co. for an allowance on goods sold on July 19.

24 Paid Lane Co. the balance due after deducting the discount.

30 Received the balance due from AKP Co. for the invoice dated July 19, net of discount.

31 Sold merchandise that cost $3,200 to Coke Co. for $5,000 under credit terms of 2y10, ny60, FOB shipping point, invoice dated July 31.