Sales and purchase-related transactions for seller and buyer
Problem 1: The following selected transactions were completed during June between Snipes Company and Beejoy Company:
June 8: Snipes Company sold merchandise on account to Beejoy Company, $18,250, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $10,000.
June 8: Spines Company paid transportation costs of $400 for delivery of merchandise sold to Beejoy Company on June 8.
June 12: Beejoy Company returned $5,000 of merchandise purchased on account on June 8 from Snipes Company. The cost of the merchandise returned was $3,000.
June 23: Beejoy Company paid Snipes Company for purchase of June 8, less discount and less return of June 12.
June 24: Spines Company sold merchandise on account to Beejoy Company, $15,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $9,000.
June 26: Beejoy Company paid transportation charges of $375 on June 24 purchase from Snipes Company.
June 30: Beejoy Company paid Snipes Company on account for purchase of June 24.
Instruction:
Illustrate the effect of each the preceding transactions on the accounts and financial statements of (1) Snipes Company and (2) Beejoy Company. Identify each transaction by date.