Option #2: Journal Entries for Merchandising Activities
Prepare an Excel spreadsheet of the journal entries for the first part of August 2014 for the Pit Bull Sings T-shirt Distributors, based on the following information:
AUG 1 – Purchased merchandise from Aerotek Company for $7,500 under credit terms of 1/10, n/30, FOB destination; invoice dated August 1.
AUG 4 – At Aerotek’s request, Pit Bull Sings paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Aerotek.
AUG 5 – Sold merchandise to Laird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination; invoice dated August 5. The merchandise had a cost of $4,000.
AUG 8 – Paid Aerotek for purchase on August 1 within the discount period.
AUG 9 – Received payment from Laird for sale on August 4 within the discount period.
Complete this assignment using an Excel spreadsheet, and date and explain each entry on your deliverable.