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Transportation Costs, Problem #11

The document shows accounting entries for sales and purchases transactions between a seller and buyer on June 16, 2019. There are four transactions - two where goods are shipped FOB shipping point with freight collect or prepaid, and two where goods are shipped FOB destination with freight collect or prepaid. Each transaction debits accounts receivable for the seller and credits cash received with a discount taken. For the buyer, accounts payable are debited and cash is credited with a discount received.

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Feiya Liu
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3K views3 pages

Transportation Costs, Problem #11

The document shows accounting entries for sales and purchases transactions between a seller and buyer on June 16, 2019. There are four transactions - two where goods are shipped FOB shipping point with freight collect or prepaid, and two where goods are shipped FOB destination with freight collect or prepaid. Each transaction debits accounts receivable for the seller and credits cash received with a discount taken. For the buyer, accounts payable are debited and cash is credited with a discount received.

Uploaded by

Feiya Liu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Point of Seller

Date P.R. Debit


2019
a. June 16 Accounts Receivable 6,000
FOB Sales
Shipping
Point, 25 Cash 5,880
Freight Sales Discount 120
Collect Accounts Receivable

b. June 16 Accounts Receivable 6,000


FOB Transportation-Out 600
Destination, Sales
Freight Cash
Prepaid
25 Cash 5,880
Sales Discount 120
Accounts Receivable

c. June 16 Accounts Receivable 6,600


FOB Sales
Shipping Cash
Point,
Freight 25 Cash 6,480
Prepaid Sales Discount 120
Accounts Receivable

d. June 16 Accounts Receivable 5,400


FOB Transportation-Out 600
Destination, Sales
Freight
Collect 25 Cash 5,280
Sales Discount 120
Accounts Receivable
Point of Buyer
Credit Date P.R.
2019
a. June 16 Purchase
6,000 FOB Accounts Payable
Shipping
Point, 17 Transportation In
Freight Cash
6,000 Collect
24 Accounts Payable
Cash
Purchase Discount
6,000
600 b. June 16 Purchase
FOB Accounts Payable
Destination,
Freight 24 Accounts Payable
6,000 Prepaid Cash
Purchase Discount

6,000 c. June 16 Purchase


600 FOB Transportation In
Shipping Accounts Payable
Point,
Freight 24 Accounts Payable
6,600 Prepaid Cash
Purchase Discount

d. June 16 Purchase
6,000 FOB Accounts Payable
Destination,
Freight 17 Accounts Payable
Collect Cash
5,400
24 Accounts Payable
Cash
Purchase Discount
er
Debit Credit

6,000
6,000

600
600

6,000
5,880
120

6,000
6,000

6,000
5,880
120

6,000
600
6,600

6,600
6,480
120

6,000
6,000

600
600

5,400
5,280
120

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