NOTE:WS2:All payments are for the full amount due (after discount).You have to compare the values in...

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NOTE:WS2:All payments are for the full amount due (after discount).You have to compare the values in the 2 tables to interpret the transactions.The comments to the right on the WS and in the Task 3 PDF explain the circumstances.WS 6 is just to see how many people know how to do a Bank Reconciliation.If you want to review the process you can check the Ch. 6 PP.We don’t cover this in class anymore, but we like to track general knowledge among MBAs.Please skip the instruction on handwritten calculations.Your EXCEL programming is sufficient.

Khushboo · Accepted Answer

2. 
	Merchandise Inventory Account 
	Date 	Desc	Amount	Balance 
	1/1	Purchase	125,000	125,000					Additions (Debits) = Positive Values
	1/1	Freight	0	125,000	FOB Destination (No Buyer Cost)				Subtractions (Credits) = Negative Values
	1/5	Return	(12,500)	112,500
	1/5	Allowance	(2,000)	110,500
	1/8	Discount 	(2,210)	108,290
	1/31	COGS	(65,000)	43,290
	2/1	Purchase	245,000	288,290
	2/1	Freight	0	288,290	FOB Destination (No Buyer Cost)
	2/5	Return	(18,500)	269,790
	2/5	Allowance	(3,500)	266,290
	2/8	Discount 	0	266,290
	2/28	COGS	(165,000)	101,290
	3/1	Purchase	175,000	276,290
	3/1	Freight	0	276,290	FOB Destination (No Buyer Cost)
	3/5	Return	(8,500)	267,790
	3/5	Allowance	(1,250)	266,540
	3/8	Discount 	(4,065)	262,475
	3/31	COGS	(135,000)	127,475
	Accounts Payable Account 
	Date 	Desc	Amount	Balance 
	1/1	Purchase	125,000	125,000					Additions (Credits) = Positive Values
	1/1	Freight	0	125,000	FOB Destination (No Buyer Cost)				Subtractions (Debits) = Negative Values
	1/5	Return	(12,500)	112,500
	1/5	Allowance	(2,000)	110,500
	1/8	Discount 	(2,210)	108,290	Paid in Full w/in 10 Days
	1/8	Payment	(108,290)	0
	2/1	Purchase	245,000	245,000
	2/1	Freight	0	245,000	FOB Destination (No Buyer Cost)
	2/5	Return	(18,500)	226,500
	2/5	Allowance	(3,500)	223,000
	2/8	Discount 	0	223,000	NO Discount (Requires Full Pay't)
	2/8	Payment	(185,000)	38,000
	3/1	Purchase	175,000	213,000
	3/1	Freight	0	213,000	FOB Destination (No Buyer Cost)
	3/5	Return	(8,500)	204,500
	3/5	Allowance	(1,250)	203,250
	3/8	Discount 	(4,065)	199,185
	3/8	Payment	(199,185)	0	Paid in Full w/in 10 Days
3.
	Merchandise Inventory Account 
	Date 	Desc	Amount	Balance 					Additions (Debits) = Positive Values
	1/1	Purchase	125,000	125,

NOTE: WS2: All payments are for the full amount due (after discount).You have to compare the values in the 2 tables to interpret the transactions.The comments to the right on the WS and in the Task 3...

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