accounting for merchandising businesses

Comprehensive Problem 2 – PART 2: Perpetual Data

1. 8/6 Ts purchased 200 long sleeve blue shirts on account from Frooty for $3 each. Terms FOB-SP 2/10, n30 Shipping costs = $40

2. 8/8 Ts purchased 500 short sleeve blue shirts on account from Frooty for $2.50 each. Terms FOB-D 2/15, n30 Shipping costs = $50

3. 8/10 Ts notified Frooty that 50 of the long sleeve shirts were purple. After negotiation, Frooty agreed to reduce the price of those shirts to $2 each. Ts agreed to keep the shirts.

4. 8/11 Ts purchased 400 long sleeve blue shirts on account from Frooty for $3.50 each. Terms FOB-D n/eom Shipping costs = $40

5. 8/12 Ts sold 290 long sleeve blue shirts to RSkool on account for $8 each. Terms FOB-SP 1/10, n30 Shipping costs = $30

6. 8/14 Ts paid for the purchase on the 6th.

7. 8/16 Ts sold 20 long sleeve purple shirts to RSkool on account for $5 each. Terms FOB-D 2/10, n/eom Shipping costs = $5

8. 8/18 Ts paid for the short sleeve shirts

9. 8/20 Ts sold 380 short sleeve shirts to RSkool on account for $7 each. Terms FOB-SP n/eom Shipping costs = $38

10. 8/21 Ts received payment from RSkool for the long sleeve blue shirts

11. 8/22 RSkool returned 100 of the short sleeve shirts because they were too small.

12. 8/24 Ts sold 200 long sleeve blue shirts to RSkool on account for $8 each. Terms FOB-D 3/5, n/30 Shipping costs = $30

13. 8/29 Ts received payment from RSkool for the purchase on the 24th

14. 8/30 Ts received payment from RSkool for the purple shirts.

15. 8/31 Ts received payment from RSkool for the purchase on the 20th

16. 8/31 Ts paid for the purchase on the 11th.

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