The following selected transactions were completed by Tropical Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 2. Sold merchandise on account, $8,000, terms FOB shipping point, n/eom. The cost of merchandise sold was $6,000.
Jan. 8. Sold merchandise on account, $20,000, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $14,000.
16. Sold merchandise on account, $12,000, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $7,200.
18. Received check for amount due for sale on January 8.
19. Issued credit memorandum for $3,000 for merchandise returned from sale on January 16. The cost of the merchandise returned was $1,800.
26. Received check for amount due for sale on January 16 less credit memorandum of January 19 and discount.
31. Paid Gallatin Delivery Service $1,500 for merchandise delivered during January to customers under shipping terms of FOB destination.
31. Received check for amount due for sale of January 2.
Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Tropical Supplies Co. Identify each transaction by date.
This question was answered on: Jul 11, 2017
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