Journalizing purchase and sale transactions—perpetual system The following transactions occurred between Belvidere Pharmaceuticals and D & S, the pharmacy chain, during July of the current year:
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Jul 6 |
D & S purchased $12,000 of merchandise from Belvidere on credit terms of 3/10, n/30, FOB shipping point. Separately, D & S paid a $200 bill for freight in. These goods cost Belvidere $3,600. |
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10 |
D & S returned $3,000 of the merchandise purchased on July 6. Belvidere accounted for the sales return and placed the goods back in inventory (Belvidere’s cost, $1,200). |
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15 |
D & S paid $6,000 of the invoice amount owed to Belvidere for the July 6 purchase, less the discount. |
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27 |
D & S paid the remaining amount owed to Belvidere for the July 6 purchase. |
Requirements
1. Journalize these transactions on the books of D & S.
2. Journalize these transactions on the books of Belvidere Pharmaceuticals.