question archive The following transactions took place at Fabulous Fashions Outlet during July 20X1
The following transactions took place at Fabulous Fashions Outlet during July 20X1
Subject:AccountingPrice: Bought3
The following transactions took place at Fabulous Fashions Outlet during July 20X1. Fabulous Fashions Outlet uses a perpetual inventory system. The firm operates in a state with no sales tax.
DATE TRANSACTIONSJuly1 Purchased dresses for $4,200 plus a freight charge of $200 from Funky Fashions, Invoice 101, dated July 1; the terms are 2/10, n/30.20X15 Sold two dresses on account to Alice Rivera, terms 1/10, n/30; issued Sales Slip 788 for $700. The cost of the dresses sold was $560. 7 Received Credit Memorandum 210 for $650 from Funky Fashions for damaged dresses returned; the goods were purchased on Invoice 101 dated July 1. 9 Accepted a return of a dress from Alice Rivera; the dress was originally sold on Sales Slip 788 of July 5; issued Credit Memorandum 89 for $300. The cost of the returned dress was $240. 10 Issued Check 1255 to pay the amount due to Funky Fashions for Invoice 101, dated July 1, less the return of July 7 and less the cash discount. 15 Received payment from Alice Rivera for the sale of July 5, less the return of July 9 and less the cash discount. 15 Recorded sales on credit cards for the two-week period ended July 15, $13,900; the bank charges a 3 percent fee on all credit card sales. The cost of merchandise sold was $11,100. 17 Purchased merchandise on account from American Rags for $3,000, subject to trade discounts of 40 percent and 10 percent, terms 1/10, n/30, Invoice 2078. 26 Paid amount owed to American Rags for the purchase of July 17, less discount, Check 1285.
Record the above transactions in a general journal.
Analyze:
What percentage of the total amount due to Funky Fashions for the purchase on July 1 is due to the freight charge?
