Question

York Company Limited began selling thermometers and oximeters during the pandemic. They completed the following merchandising transactions in the month of Oct 2020 using a perpetual inventory system.
Oct 1 2
9
10
12
15
17
19
24
27
30
Required:
Journalize
Purchased 90 items at the cost of $80 each on account, terms 2/10, n/30
Sold 55 merchandise for $140 each on account, terms 1/10, n/30. The cost of the merchandise sold was $4,400.
Received payment in full, less discounts, from customers billed on Oct 2.
Paid suppliers in full, less discount, for purchases on Oct 1.
Purchased merchandise for cash $2,400.
Received refund for poor quality merchandise from supplier on cash purchase $480.
Purchased merchandise on account for $1,700, FOB shipping point, terms 2/10, n/30.
Paid freight of $180 for Oct 17 purchase.
Sold merchandise for cash $5,600. The merchandise sold had a cost of $3,200
Paid in full for merchandise purchased on Oct 17, less discount.
Made refunds to cash customers for defective merchandise $700. The returned merchandise cost $400.
the transactions (omit explanations).

Answer 1

The transactions of York Company in October are recorded as follows:

Journal Entries:

Oct 1 Debit Inventory $7,200

Credit Accounts Payable $7,200

terms 2/10, n/30

Oct 2 Debit Accounts Receivable $7,700

Credit Sales Revenue $7,700

terms 1/10, n/30

Debit Cost of goods sold $4,400

Credit Inventory $4,400

Oct 9 Debit Cash $7,623

Debit Cash Discounts $77

Credit Accounts Receivable $7,700

Oct 10 Debit Accounts Payable $7,200

Credit Cash $7,056

Credit Cash Discounts $144

Oct 12 Debit Inventory $2,400

Credit Cash $2,400

Oct 15 Debit Cash $480

Credit Inventory $480

Oct 17 Debit Inventory $1,700

Credit Accounts Payable $1,700

FOB shipping point, terms 2/10, n/30

Oct 19 Debit Freight-in Expense $180

Credit Cash $180

Oct 24 Debit Cash $5,600

Credit Sales Revenue $5,600

Debit Cost of goods sold $3,200

Credit Inventory $3,200

Oct 27 Debit Accounts Payable $1,700

Credit Cash $1,666

Credit Cash Discounts $34

Oct 30 Debit Sales Refunds $700

Credit Cash $700

Debit Inventory $400

Credit Cost of goods sold $400

Data Analysis:

Oct 1 Inventory $7,200 Accounts Payable $7,200 terms 2/10, n/30

Oct 2 Accounts Receivable $7,700 Sales Revenue $7,700  terms 1/10, n/30

Cost of goods sold $4,400 Inventory $4,400

Oct 9 Cash $7,623 Cash Discounts $77 Accounts Receivable $7,700

Oct 10 Accounts Payable $7,200 Cash $7,056 Cash Discounts $144

Oct 12 Inventory $2,400 Cash $2,400

Oct 15 Cash $480 Inventory $480

Oct 17 Inventory $1,700 Accounts Payable $1,700 FOB shipping point, terms 2/10, n/30

Oct 19 Freight-in Expense $180 Cash $180

Oct 24 Cash $5,600 Sales Revenue $5,600

Cost of goods sold $3,200 Inventory $3,200

Oct 27 Accounts Payable $1,700 Cash $1,666 Cash Discounts $34

Oct 30 Sales Refunds $700 Cash $700

Inventory $400 Cost of goods sold $400

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