1. Presented below are selected transactions for Marigold Company during September and October
of the current year. Marigold uses a perpetual inventory system and the earnings approach. Sept.
1 Purchased merchandise on account from Hillary Company at a cost of $51,000,FOB
destination, terms 1/15,n/30. 2 The correct company paid $2,000 of freight charges to Trucking
Company on the September 1 merchandise purchase. 5 Returned for credit $2,320 of damaged
goods purchased from Hillary Company on September 1. 15 Sold the remaining merchandise
purchased from Hillary Company to Irvine Company for $121,700, terms 2/10, n/30, FOB
destination. 16 The correct company paid $2,100 of freight charges on the September 15 sale of
merchandise. 17 Issued Irvine Company a credit of $5,800 for returned goods. These goods had
cost Marigold Company $2,320 and were returned to inventory. 25 Received the balance owing
from Irvine Company for the September 15 sale. 30 Paid Hillary Company the balance owing for
the September 1 purchase. Oct. 1 Purchased merchandise on account from Kimmel Company at
a cost of $58,000, terms 2/10, n/30, FOB shipping point.
Oct. 1 Purchased merchandise on account from Kimmel Company at a cost of $58,000, terms
2/10,n/30,FOB shipping point. 2 The correct company paid freight costs of $1,100 on the
October 1 purchase. 3 Obtained a purchase allowance of $2,400 from Kimmel Company to
compensate for some minor damage to goods purchased on October 1. 10 Paid Kimmel
Company the amount owing on the October 1 purchase. 11 Sold all of the merchandise
purchased from Kimmel Company to Kieso Company for $139,000, terms 2/10, n/30, FOB
shipping point. 12 The correct company paid $800 freight costs on the October 11 sale. 17 Issued
Kieso Company a sales allowance of $1,800 because some of the goods did not meet Kieso's
exact specifications. 31 Received a cheque from Kieso Company for the balance owing on the
October 11 sale. Prepare journal entries to record the above transactions for Marigold Company.
(Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.
Prepare journal entries to record the above transactions for Marigold Company. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry
is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal
entries in the order presented in the problem. List all debit entries before credit entries.)