1. Presented below are selected transactions for Sarasota Company dairing September and October
ol the current year Sarsioca ines a perpetual inventory system and the earnings approsch. Sept: 1
Purchased merchandise on account trom Hillary Compirey at a cost of 546,000, FOB d-itination
termo U/15, n30 2. The coerect compariy pald $2000 of freight changes to Truckina Company
on the Seblember 1 merchandice purchase 5 Returned for credit $1000 of damaged eaods
purchated from Hilliry Company on Septomber t. 16. The carrect company paid 12.200 ot freight
charges an the Septeneer 15 ule of menchin wise 17 lused tivine Company a credit of 56.000 tor
reburned goods thuie goodihar cou Sarasota Conown 13.000 and were returned to imentory 25
Received the talance owing trom invine Comyuny for the September 15 sale. Wo Paid Haiary
Comsan the bulance owing for the Septenber 1 wurchane point: 2. Tha correctcompany puld
fretefit costs of $1,100 on the october 1 purchare 3 Obeained a purchaie allowance or 32,600
trom Kanmed Company fo comuemale tor wome mincr iamage to goosh puechsitd on October 1.
10 Paid Kowmel Combanw the amount owire on the Octobier 1 purchase:
point. 2 The correct compary paid freight costs of $1,100 on the October 1 purchase. 3 Obtained
a purchase allowance of $2,600 from Kimmel Compary 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 Compary to Kieso Company
for $105,000, terms 2/10,n/30. FOE shipping point. 12 The correct company paid $800 freight
costs on the October 11 sale. 17 Issued Kieso Company a sales allowance of $1,500 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 Sarasota 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 journol entries in the order presented in the
problem. List all debit entries before credit eatries.
Date Account Titles and Explanation
Question 3 of 3 [torecord credit for boods returneid] (Torecerd cost of eoods returned)
Question 3 of 3 (To record payment on account) [Ta record sales on accouns.] To recerd cost of
goods sold.