Problem:
The following transaction would be journalized in the books of Company #1 and Company #2
"Bogus company" engaged in the following transactions during July:
July 2nd purchased inventory for cash $800
July 5th purchased store supplies on credit terms of net eom,$600
July 8th purchased inventory of $3,000, plus freight charges of $230. Credit terms are 3/15n/ 30 ( 3% discount if paid in 15 days or full payment if paid 30 days)
July 9th sold goods for cash $1,200. "Bogus company's" cost of these goods was $700
July 11th returned $200 of the inventory purchased on July 8th. It was damaged.
July 12th purchased inventory on credit of 3 / 10n / 30 ,$3,330.
July 14th sold inventory on credit terms of 2 /10n / 30, $9,600 (COST $5,000).
July 16th paid utilities expense, $275.
July 20th received returned inventory from July 14 sale, $400. "Bogus company" shipped the wrong goods by mistake. "Bogus company's" cost of the inventory received wa $250
July 21st borrowed the amount owed on the July 8th purchase. Signed a note payable to the bank for $2,946, which takes into account the return of inventory on July 11th
July 21st paid supplier for goods purchased on July 8th less the return and the discount.
July 23rd received $6,860 cash in partial settlement of his account from the customer who purchased inventory on July 14th. Granted the customer a 2% discount and credited his account receivable for $7,000.
July 30th paid for the store supplies purchased on July 5th.