Reference no: EM132999108

Question 1 - This information relates to Metlock Co.

1. On April 5, purchased merchandise from Ivanhoe Company for $26,200, terms 3/10, n/30.

2. On April 6, paid freight costs of $540 on merchandise purchased from Ivanhoe.

3. On April 7, purchased equipment on account for $30,500.

4. On April 8, returned $3,900 of April 5 merchandise to Ivanhoe Company.

5. On April 15, paid the amount due to Ivanhoe Company in full.

Prepare the journal entries to record the transactions listed above on Metlock Co.'s books. Metlock Co. uses a perpetual inventory system.

Question 2 - The following transactions are for Shamrock Company.

1. On December 3, Shamrock Company sold $517,600 of merchandise to Pharoah Co., on account, terms 1/10, n/30. The cost of the merchandise sold was $319,300.

2. On December 8, Pharoah Co. was granted an allowance of $24,000 for merchandise purchased on December 3.

3. On December 13, Shamrock Company received the balance due from Pharoah Co.

Prepare the journal entries to record these transactions on the books of Shamrock. Shamrock uses a perpetual inventory system.

Assume that Shamrock Company received the balance due from Pharoah Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.