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Merchandising Finals

Montrose Company completed various transactions during May relating to purchases and sales of merchandise using a perpetual inventory system. Transactions included purchases from and returns to suppliers Floyd Co. and Kramer Co., sales to customers C.F. Howell Co., Comer Co. and through non-bank credit cards, and payments and receipts from these transactions.

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837 views3 pages

Merchandising Finals

Montrose Company completed various transactions during May relating to purchases and sales of merchandise using a perpetual inventory system. Transactions included purchases from and returns to suppliers Floyd Co. and Kramer Co., sales to customers C.F. Howell Co., Comer Co. and through non-bank credit cards, and payments and receipts from these transactions.

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ROB101512
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© © All Rights Reserved
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Montrose Company completed the following transactions during May of the current year.

Montrose Company uses a perpetual inventory system.

May 3. Purchased merchandise on account from Floyd Co., $4,000, terms FOB shipping
        point, 2/10, n/30, with prepaid transportation costs of $120 added to the
invoice.
  5. Purchased merchandise on account from Kramer Co., $8,500, terms FOB
        destination, 1/10, n/30.
  6. Sold merchandise on account to C. F. Howell Co., list price $4,000, trade
        discount 30%, terms 2/10, n/30. The cost of the merchandise sold was $1,125.
      8.     Purchased office supplies for cash, $150.
      10.     Returned merchandise purchased on May 5 from Kramer Co., $1,300.
      13.     Paid Floyd Co. on account for purchase of May 3, less discount.
      14.     Purchased merchandise for cash, $10,500.
  15. Paid Kramer Co. on account for purchase of May 5, less return of May 10 and
        discount.
      16.     Received cash on account from sale of May 6 to C. F. Howell Co., less discount.
  19. Sold merchandise on nonbank credit cards and reported accounts to the card
        company, American Express, $2,450. The cost of the merchandise sold was
$980.
  22. Sold merchandise on account to Comer Co., $3,480, terms 2/10, n/30. The
        cost of the merchandise sold was $1,400.
  24. Sold merchandise for cash, $4,350. The cost of the merchandise sold was
        $1,750.
  25. Received merchandise returned by Comer Co. from sale on May 22, $1,480.
        The cost of the returned merchandise was $600.
  31. Received cash from card company for nonbank credit card sales of May 19, less
        $140 service fee.
May 2    Cost of Merchandise Sold    $3,750               Merchandise Inventory         $3,750

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