Journal Entries for Merchandising Transactions Shown Below Is a Partial

question 122

Essay

Journal entries for merchandising transactions Shown below is a partial chart of accounts for Main Street Markets, followed by a series of merchandising transactions. The company uses a perpetual inventory system, records purchases at net cost, and records sales at the full invoice price. Sales taxes are collected on all sales, and the sales tax liability is recorded immediately. Freight charges on inbound shipments are recorded in the Transportation-in account.
Indicate the accounts that should be credited in recording each transaction by placing the appropriate account number(s) in the space provided.
$$\begin{array} { | l | l | l | l | } \hline 1 & \text { Cash } & 50 & \text { Sales } \\\hline 2 & \text { Accounts Receivable } & 51 & \text { Sales Discounts } \\\hline 5 & \text { Inventory } & 52 & \text { Sales Returns \& Allowances } \\\hline 30 & \text { Accounts Payable } & 60 & \text { Cost of Goods Sold } \\\hline 35 & \text { Sales Taxes Payable } & 62 & \text { Transportation-in } \\\hline 39 & \text { Income Taxes Payable } & \text { XX } & \text { All other expense account } \\\hline\end{array}$$ $$\begin{array} { | l | l | c | c | } \hline & \text { Transaction } & \text { Account(s) } & \text { Account(s) } \\\hline & \text { Example: Sold merchandise for cash } & \text { Debited } & \text { Credited } \\\hline \text { A } & \text { Purchased merchandise on account, terms } 2 / 10 , \mathrm { n } / 30 & 1,60 & 35,50,5 \\\hline \text { B } & \begin{array} { l } \text { Returned some of the merchandise purchased in } \\\text { transaction A to the supplier for full credit }\end{array} & & \\\hline \text { C } & \text { Sold merchandise on account, terms } 2 / 10,1 / 30 & & \\\hline \text { D } & \begin{array} { l } \text { The customer in transaction C returned some of the } \\\text { merchandise, credited the customer's account for the } \\\text { original sales price (The returned goods were in } \\\text { "new" condition and were returned to inventory) }\end{array} & & \\\hline \text { E } & \text { Paid an account payable within the discount period } & & \\\hline \text { F } & \begin{array} { l } \text { Paid an account payable after the discount period had } \\\text { expired }\end{array} & & \\\hline \text { G } & \begin{array} { l } \text { Received cash payment from a credit customer } \\\text { within the discount period }\end{array} & & \\\hline \text { H } & \begin{array} { l } \text { Received payment from a credit customer after the } \\\text { discount period had expired }\end{array} & & \\\hline \text { I } & \begin{array} { l } \text { Paid transportation charges on an inbound shipment } \\\text { of merchandise from a supplier }\end{array} & & \\\hline \text { J } & \begin{array} { l } \text { Paid delivery charges on a shipment of merchandise } \\\text { being sent to a customer }\end{array} & & \\\hline \text { K } & \begin{array} { l } \text { Remitted sales taxes collected during the period to } \\\text { the state tax authorities }\end{array} & & \\\hline \text { L } & \begin{array} { l } \text { The physical inventory taken at year-end disclosed a } \\\text { normal amount of inventory shrinkage }\end{array} & & \\\hline\end{array}$$

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Definitions:

General Values

A broad range of values besides those associated with job success.

Interest

A psychological concept referring to the attention, curiosity, or preference an individual has towards certain subjects or activities.

Work-related Values

The beliefs and principles that individuals hold regarding work and its role in their life, influencing their job satisfaction and career choices.

Holland's Theory

A theory of career and vocational choice based upon personality types, suggesting that people are happiest in work environments that match their personal interests and abilities.