Answer Happy

Question Three: Journalize the following transaction for Tesco Company during the month of May 2017. May 1", Purchased merchandise inventory from Sainsbury Co. list price $62,000, trade discount 15%, FOB shipping point, prepaid fright cost $650 add it to the invoice. Term of credit 1/15, n/45. May 3“, Sold merchandise Inventory to ASDA Supermarket list price $85,000 Trade discount 10%, rate of sales tax 5%. FOB shipping point, Paid fright cost $200. Cost of merchandise sold $45,000. Term of credit 2/10, n/30. May 5“, ASDA Supermarket return part of merchandise purchased on 3of May list price $15,000 trade discount 10%. May 6“, Sold merchandise inventory to Morrison Ltd list price $42,000. FOB destination, term of credit 1/10, n/30, Cost of goods sold $30,000. Rate of sale tax 10%. May 7", We return part of the goods purchased on May 1" to Sainsbury Co. list price $6000, trade discount 15% May 9“, Received full Payment from ASDA Supermarket for sale made on May 3". May 11", Made full payment to Sainsbury Co. for purchased made on May 1".