Download Kirk Corporation purchased $5000 worth of merchandise, terms 2/10

Kirk Corporation purchased $5,000 worth of
merchandise, terms 2/10 n/30, FOB shipping
points, from the Spock Corporation on June 4.
The cost of merchandise to Spock was $3,600.
On June 10, Kirk returned $700 worth of goods
to Spock for full credit. The goods had a cost of
$450 to Spock. Kirk paid shipping cost $30. On
June 12, the account was paid in Full. Prepare
journal entries without explanation to record
these transactions in :
1. Kirk's records under perpetual system.
2. Kirk's records under periodic system.
3. Spock's records under perpetual system.
4. Spock's records under periodic system.
1.Kirk - Perpetual
a. Merchandise Inventory
5,000
Accounts Payable
5,000
b. Accounts Payable
700
Merchandise Inventory
700
c. Accounts Payable
4,300
Purchase discount
86
Cash
4,214
d. Merchandise inventory
30
Cash
30
2. Kirk - Periodic
a. Purchase
5,000
Accounts Payable
5,000
b. Accounts Payable
700
Purchase returns and Allowance 700
c. Accounts Payable
4,300
Purchase discount
86
Cr. Cash
4,214
d. Transportation IN (Freight in) 30
Cash
30
3. Spock -Perpetual Periodic
a. Accounts Receivable
5,000
Sales
b. Cost of Good Sold
3,600
Cr. Merchandise Inventory
c. Sales Returns and Allowances 700
Accounts Receivable
d. Merchandise Inventory
450
Cost of Good Sold
e. Cash
4,214
Sales discount
86
Accounts Receivable
4. Spcok- Periodic
a. Accounts Receivable
Cr. Sales
5,000
3,600
700
450
4,300
5,000
c. Sales Returns and Allowances 700
Cr. Accounts Receivable
5,000
700
e. Cash
4,214
Sales discount
86
Accounts Receivable
4,300
Assuming beginning balance of Inventory for
Kirk is $4,000. Under periodic system, the
physical count for the inventory at the end of the
period showed $4,500 inventory left at the end
of period.
Merchandise Inventory 4,500
Cost of goods sold
4,414
Purchase discount
86
Merchandise Inventory 4,000
Purchase
5,000