The company paid cash to Lyn Addie for five days’ work at the rate of $215 per day. Four of the five days relate to wages payable that were accrued in the prior year.
The company purchased $7,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
The company completed a five-day project for Alex’s Engineering Co. and billed it $5,490, which is the total price of $6,840 less the advance payment of $1,350.
The company sold merchandise with a retail value of $4,200 and a cost of $3,550 to Liu Corp., invoice dated January 13.
The company paid $790 cash for freight charges on the merchandise purchased on January 7.
The company paid Kansas Corp. for the invoice dated January 7, net of the discount.
Liu Corp. returned $500 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $230 cost, is discarded. (The policy of Success Systems is to leave the cost of defective products in cost of goods sold.)
The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise.
The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $476.
The company purchased $9,600 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.
The company sold merchandise with a $4,580 cost for $5,830 on credit to KC, Inc., invoice dated January 26.
The company received a $476 credit memorandum from Kansas Corp. concerning the merchandise returned on January 24.
The company paid $2,685 cash to Hillside Mall for another three months’ rent in advance.
The company paid Kansas Corp. for the balance due, net of the cash discount, less the $476 amount in the credit memorandum.
The company paid $600 cash to the local newspaper for an advertising insert in today’s paper.
The company sold merchandise with a $2,620 cost for $3,320 on credit to Delta Co., invoice dated February 23.
The company reimbursed Adria Lopez for business automobile mileage (400 miles at $0.30 per mile).
The company purchased $2,790 of computer supplies from Harris Office Products on credit, invoice dated March 8.
The company received the balance due from Delta Co. for merchandise sold on February 23.
The company paid the full amount due to Harris Office Products, consisting of amounts created on December 15 (of $1,180) and March 8.
The company sold merchandise with a $2,132 cost for $2,810 on credit to Wildcat Services, invoice dated March 25.
The company sold merchandise with a $1,058 cost for $2,290 on credit to IFM Company, invoice dated March 30.
The company reimbursed Adria Lopez for business automobile mileage (600 miles at $0.30 per mile).
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