Shehgarlynn Mini Mart

The following are the daily business transaction of Shehgarlynn Mini Mart:

January 1, 2013  bought $6,500 of merchandise on account, terms 3/10, 2/15, n/30, from Yosores Company,

January 3, 2013 Sales on credit to Gary Co. amounted to $3,750, terms 2/10, n/30.

January 10, 2013 Gary Co. return of $570.00 on goods sold on Jan. 3, 2013

January 14, 2013 Received a cash from Gary Co. in payment of the goods sold on Jan. 3.

January 15, 2013 Sent a check # 025, amounting  to Yosores Co. in payment of purchase made on January 1,

January 18, 2013 Purchased merchandise on credit to Shehlynn Co. for $8,500, terms 3/10, 2/15, n/30.
                                     
January 25, 2013 Some items purchased from Shehlynn Co. are returned amounted $950 in goods purchased on January 18.

January 29, 2013 Paid for freight charges on purchase of Jan. 1. amounting $250.
                                     
January 31, 2013 Paid to Shehlynn Co., the total amount in payment of purchase made on January 18.

Prepare the Net Income of Shehgarlynn Mini Mart

Recording Business Transaction

The following are the daily business transaction of Shehgarlynn Mini Mart:

January 1, 2013  bought $5,500 of merchandise on account, terms 3/10, 1/15, n/30, from Yosores Company,

Journal Entry

Merchandise Purchases                       $5,500.00
   Accounts Payable                                                       $5,500.00

January 5, 2013 Sales on credit to Gary Co. amounted to $2,500, terms 2/10, n/30.

Journal Entry

Accounts Receivable                           $2,500.00
   Sales                                                                              $2,500.00

January 10, 2013 Gary Co. return of $550.00 on goods sold on Jan. 5.

Journal Entry

Sales Returns and Allowances         $550.00
  Accounts Receivable                                           $550.00

January 14, 2013 Received a cash form Gary Co. in payment of the goods sold on Jan. 5.

Journal Entry

Cash                                          $1,911.00
Sales Discount                               39.00
  Accounts Receivable                                  1,950.00

Computation:
Cost of Goods Sold                             $2,500.00
Less: Sales Return and Allowances     550.00 
Total Sales ..................................$1,950.00
Discount Rate...............................      2%   
Sales Discount                                               39.00  

Sales                                    $1,950.00
Less: Sales Discount                39.00
Cash received                     $1,911.00

January 15, 2013 Sent a check # 025, amounting  to Yosores Co. in payment of purchase made on January 1,

Journal Entry

Accounts Payable                           $5,500.00
   Purchases Discount                                                     55.00
   Cash                                                                          $5,445.00

Computation:
Merchandise Purchases             $5,500.00
Discount Rate                                            1%   
Purchases Discount                               55.00

Merchandise Purchases             $5,500.00
Less:Purchases Discount                     55.00
Net Purchases                                   5,445.00

January 18, 2013 Purchased merchandise on credit to Shehlynn Co. for $7,500, terms 3/10, n/30.

Journal Entry

Merchandise Purchases                          $7,500.00
   Accounts Payable                                                          $7,500.00

January 20, 2013 Sales for the day amounted to $15,325.00

Journal Entry

Cash                                         $15,325.00
   Sales                                                                 $15,325.00

January 25, 2013 Some items purchased from Shehlyn Co. are returned amounted $1,750 in goods purchased on January 18.

Journal Entry

Accounts Payable                          $1,750.00
   Purchases Returns & Allowances                $1,750.00

January 29, 2013 Paid for freight charges on purchase of Jan. 1. amounting $150.

Journal Entry

Freight on Purchases                         $150.00
   Cash                                                                           $150.00

January 31, 2013 Paid to Shehlynn Co., the total amount in payment of purchase made on January 18.

Journal Entry

Accounts Payable                                $5,750.00
   Cash                                                                                $5,750.00

Computation

Merchandise Purchase                                $7,500.00
Less: Purchases Returns & Allowances    1,750.00
Net Purchases                                                  $5,750.00