Sarasota Company selected transactions journal entries
1. Presented below are selected transactions for Sarasota Company during September and October
af the current year. Sarasota uses a perpetual inventory system and the earnings approach. Sept. 1
Purchssed merchandise on account from Hillary Company at a cost of $48.000. FOB destination,
termis 1/15, n/30. 2 The correct compariy alaid 32000 ot freight charges to Trucking Compamy
on the 5 September 1 merchandise purchsse. 5 Returned for crodit $3.000 of damaged goods
purchaved from Hillary Company on 5 eptember 1 . 15 Sold the remaining merchandise
gurchased trem Hillary Company to Invine Compant for $90,000, terms 2/10,n/30 FOb
destination. 16 The correct company poid 12.200 of freight duarges on the September 15 sale of
merchsndise 17 Issued irvine Compary a credit of $6.000 for returmed goods. These goodshad
cost Sarasola Conpany $3000 and were returned to inveriory 25. Received the bat ance owing
from Irvine Compuny for the September 15 sale. 70 Paiditiltary Compary the balance cwing tor
the September 1 purchase. point. 2. The correct compary pald freigthe costs of 51,100 on the
October 1 purthase 3 Obtained a purchuse allowance of 52.600 trom Kimunel Company to
compensate for same mincr dwsage to goodh purchased on Cetober 1 10. Paid Kimmel Compaey
the amount owing on the Octobier 1 purchate. FOAl thiseinswaint
Oct. 1 Purchased merchandise on account from Kimmel Company at a cost of $55.000, terms
2/10,n/30, FOB shipping point. 2. The correct company paid freight costs of $1,100 on the
October 1 purchase. 3 Obtained a purchase allowance of $2,600 from Kimmel Company to
compensate for some minor damage to goods purchased on October 1 . 10 Paid Kimmel
Company the amount owing on the October 1 purchase. 11 Sold all of the merchandise
purchased from Kimmel Company to Kieso Company for $105,000, terms 2/10, n/30, FOB
shipping point. 12 The correct company paid $800 freight costs on the October 11 sale. 17 Issued
Kieso Company a sales allowance of $1,500 because some of the goods did not meet Kleso's
exact specifications. 31. Received a cheque from Kieso Company for the balance owing on the
October 11 sale. Prepare fournal entries to record the above transactions for Sarasota Company.
(Credit account titles are automatically indented when the amount is entered. Do not indent
manually if no entry is required, select "No Entry" for the account tities and enter o for the
amounts. Record journal entries in the order presented in the problem. List all debit entries
before credit entries.)
Question 3 of 3 1.52/5:sesin17: [To record credit for goods returned]
1.52.15
2. Question 3 of 3 1.52/5[ Oet.11: : Casi (To recerd atabs on aceount.) oet11: (To record cost of
goots sald) Qct, 17: t Actounis Hterepitis Can Salin Diveaint Actsunts Hoction ie: