Explore BrainMass

# Compute the amount of the receivable for Sweet Dreams Company

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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.