Task Team of FUNDaMENTAL ACCOUNTING School of Business. Sun Yat-sen University Lesson 6 Accounting for Merchandising activities xercise Calculation and Analysis Problems 1. OSu Co. is an office-supply store. The company uses a perpetual inventory system, records purchases at net cost, and records sales revenue at full invoice price. Record the following transactions in the company 's general journal lay 1 Purchased four HP copying machines on account from HP Corp. Total invoice price was $2, 500 per machine($10,000 total); terms of 2/10, n/30. These machines are intended for resale 3 Found one of the HP copiers to be defective and returned it to HP, thus reducing the 9 Sold one of the HP copiers to Sunny Co. The sales price was $4, 000, terms 5/10, n/60 10 Paid the remaining amount owned to HP Corp, less the allowable discount 19 Received full payment from Sun, less the allowable discount 2. Shown below is a partial chart of accounts for Gz Office Supply Co., followed by a series of merchandising transactions. The company uses a perpetual inventory system, records purchases at net cost, and records sales at the full invoice price. Freight charges on inbound shipments are recorded in the Transportation-in account Required: Indicate the accounts that should be debited and credited in recording each of the following transactions ansa Account(s) Account(s) Debited Credited a Purchased merchandise on account, terms 2/10, n/30 b. Returned some of the merchandise purchased in transaction a to the supplier for full credit c Sold merchandise on account. terms 2/10. n/30 d. The customer in transaction c returned some of the merchandise, credited the customers' account for the original sales price (The returned goods were in" new"condition ar were returned to inventory e. Paid an account payable within the discount period f. Paid an account payable after the discount period had expired g. Received cash payment from a credit customer within the discount period h. Received payment from a credit customer after the discount period had expiredTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University 1 Lesson 6 Accounting for Merchandising Activities Exercise Calculation and Analysis Problems 1. OSu Co. is an office-supply store. The company uses a perpetual inventory system, records purchases at net cost, and records sales revenue at full invoice price. Record the following transactions in the company’s general journal. May 1 Purchased four HP copying machines on account from HP Corp. Total invoice price was $2,500 per machine ($10,000 total); terms of 2/10, n/30. These machines are intended for resale. 3 Found one of the HP copiers to be defective and returned it to HP, thus reducing the amount owed. 9 Sold one of the HP copiers to Sunny Co. The sales price was $4,000, terms 5/10, n/60. 10 Paid the remaining amount owned to HP Corp., less the allowable discount. 19 Received full payment from Sun, less the allowable discount. 2. Shown below is a partial chart of accounts for GZ Office Supply Co., followed by a series of merchandising transactions. The company uses a perpetual inventory system, records purchases at net cost, and records sales at the full invoice price. Freight charges on inbound shipments are recorded in the Transportation-in account. Required: Indicate the accounts that should be debited and credited in recording each of the following transactions. Transactions Account(s) Debited Account(s) Credited a. Purchased merchandise on account, terms 2/10, n/30 b. Returned some of the merchandise purchased in transaction a to the supplier for full credit c. Sold merchandise on account, terms 2/10, n/30 d. The customer in transaction c returned some of the merchandise; credited the customers' account for the original sales price (The returned goods were in “new” condition and were returned to inventory) e. Paid an account payable within the discount period f. Paid an account payable after the discount period had expired g. Received cash payment from a credit customer within the discount period h. Received payment from a credit customer after the discount period had expired