Proceeding transactions for sweet dreams company


Problem:

Sweet Dreams Company, a retailer of beds and mattresses, engaged in the following transactions during September:

Sept.

4 Purchased inventory for cash, $14,000.

6 Purchased store supplies on credit from C. Paper, terms of n/30, $660.

9 Purchased inventory of $5,500 plus shipping charges of $200 from R.U. Sleepy; credit terms are 2/15, n/60, FOB shipping point.

10 Sold goods for cash, $2,800; Sweet Dreams' cost of these goods was $1,820.

12 After negotiations with R.U. Sleepy, Sweet Dreams received $1,500 allowance on the inventory purchased on September 9 because the mattress tops were stained.

14 Purchased $4,560 of inventory on credit from T. Sandman, terms of 2/10, n/45, FOB destination.

15 Sold $8,400 of inventory on credit to S.L. Beauty under terms of 3.10,n/30, FOB shipping point. The goods had a cost of $5,460.

16 Paid advertising expense of $250

18 S.L. Beauty returned $1,600 of merchandise from the September 15 sale because Sweet Dreams had shipped incorrect merchandise; the original cost of the merchandise returned was $1,040.

22 Paid R.U. Sleepy for goods purchased on September 9 less the allowance and the discount.

25 After agreeing to allow a discount on a partial payment, Sweet Dreams received payment of $3,000 from S.L. Beauty for the sale on September 15, less the discount.

19 Paid for the store supplies purchased on September 6.

Requirements:

1. Journalize the proceeding transactions for Sweet Dreams Company.

2. Compute the amount of the receivable on September 30 from S.L. Beauty to whom Sweet Dreams sold merchandise on Sept. 15.

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