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Krey Distributing Company Completed These Merchandising Transactions in The Month

Krey Distributing Company completed various merchandising transactions in April 2014. They purchased inventory on account and for cash from suppliers, sold inventory for cash and on account to customers, paid and received payments and discounts, and made refunds. The document provides details of these transactions on specific dates in April and lists the company's accounts, instructing the reader to journalize, post, and prepare financial statements for the month.

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123 views

Krey Distributing Company Completed These Merchandising Transactions in The Month

Krey Distributing Company completed various merchandising transactions in April 2014. They purchased inventory on account and for cash from suppliers, sold inventory for cash and on account to customers, paid and received payments and discounts, and made refunds. The document provides details of these transactions on specific dates in April and lists the company's accounts, instructing the reader to journalize, post, and prepare financial statements for the month.

Uploaded by

trilocksp Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Krey Distributing Company completed these

merchandising transactions in the month


Krey Distributing Company completed these merchandising transactions in the month of April.
At the beginning of April, the ledger of Krey showed Cash of $10,000 and Common Stock of
$10,000.Apr. 2 Purchased merchandise on account from Am-Bev Co. $8,700, terms 2/10,
n/30.4 Sold merchandise on account $6,000, terms 2/10, n/30. The cost of the merchandise
sold was $3,700.5 Paid $200 freight on April 4 sale.6 Received credit from Am-Bev Co. for
merchandise returned $400.11 Paid Am-Bev Co. in full, less discount.13 Received collections in
full, less discounts, from customers billed on April 4.14 Purchased merchandise for cash
$4,700.16 Received refund from supplier for returned merchandise on cash purchase of April
14, $500.18 Purchased merchandise from Lohr Distributors $5,500, terms 2/10, n/30. 20 Paid
freight on April 18 purchase $180.23 Sold merchandise for cash $8,300. The cost of the
merchandise sold was $5,580.26 Purchased merchandise for cash $2,300.27 Paid Lohr
Distributors in full, less discount.29 Made refunds to cash customers for returned merchandise
$180. The returned merchandise had a cost of $120.30 Sold merchandise on account $3,980,
terms n/30. The cost of the merchandise sold was $2,500.Krey Distributing Company’s chart of
accounts includes Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock,
Sales Revenue, Sales Returns and Allowances, Sales Discounts, Cost of Goods Sold, and
Freight-Out.Instructions(a) Journalize the transactions.(b) Post the transactions to T-accounts.
Be sure to enter the beginning cash and common stock balances.(c) Prepare the income
statement through gross profit for the month of April 2014.(d) Calculate the profit margin and the
gross profit rate. (Assume operating expenses were $3,000.)View Solution:
Krey Distributing Company completed these merchandising transactions in the month
SOLUTION-- http://solutiondone.online/downloads/krey-distributing-company-completed-these-
merchandising-transactions-in-the-month/

Unlock answers here solutiondone.online


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