Accounting Assignment - Journalizing Inventory Transactions

Review the transactions and financial position of Candies Galore for January in the Excel Template.

Requirements:

1.    Prepare the journal for the January transactions.

2.    Determine the gross profit for January.

The following are the transactions for Candies Galore for the month of January.

During January the following transactions occurred:

Purchased $5,900 of merchandise from The Chocolate Shop.

Terms 2/15, n/45, FOB shipping point. The Chocolate Shop prepaid $350 in shipping and added it to the invoice

purchased $350 of supplies on account from The Office Barn

 Terms 2/10, n/30, FOB destination

Sold $950 (cost $500) of merchandise on account to Maple Fair. 

Terms 3/15, n/45, FOB destination

Paid $75 freight charges to deliver goods to Maple Fair

Returned $1400 of the merchandise purchased on January 8 and received credit

Sold $650 (cost $350) of merchandise to cash customers

Paid for the supplies purchased on January 10

Paid the Chocolate Shop the amount due from the January 8 purchase in full 

Maple Fair returned $175 (cost $100) of merchandise from the January 14 sale

Purchased $2100 of inventory for cash

Received payment in full from Maple Fair for the January 14 sale.