Reference no: EM132680389
Problem - Sales-related and purchase-related transactions
The following were selected from among the transactions completed by Wild Adventures Company during December of the current year:
Dec. 3. Purchased merchandise on account from Miramar Co., list price $45,000, trade discount 20%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,200 added to the invoice.
Dec. 5. Purchased merchandise on account from Grand Canyon Co., $19,000, terms FOB destination, 2/10, n/30.
Dec. 6. Sold merchandise on account to Arches Co., list price $30,000, trade discount 25%, terms 2/10, n/30. The cost of the merchandise sold was $14,000.
Dec. 7. Sold merchandise on account to Arches Co., list price $30,000, trade discount 25%, terms 2/10, n/30. The cost of the merchandise sold was $14,000.
Dec. 13. Paid Miramar Co. on account for purchase of December 3, less discount.
Dec. 15. Paid Grand Canyon Co. on account for purchase of December 5, less return of December 7 and discount.
Dec. 16. Received cash on account from sale of December 6 to Arches Co., less discount.
Dec. 19. Sold merchandise on MasterCard, $41,950. The cost of the merchandise sold was $25,000.
Dec. 22. Sold merchandise on account to Yellowstone River Co., $20,000, terms 2/10, n/30. The cost of the merchandise sold was $9,000.
Dec. 23. Sold merchandise for cash, $57,500. The cost of the merchandise sold was $34,500.
Dec. 28. Received merchandise returned by Yellowstone River Co. from sale on December 22, $4,000. The cost of the returned merchandise was $1,800.
Dec. 31. Paid MasterCard service fee of $1,700.
Instructions - Journalize the transactions.