Prepare journal entries to record the following merchandising transactions of Menards, which applies the perpetual inventory system and gross

Prepare journal entries to record the following merchandising transactions of Menards, which applies the perpetual inventory system and gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 3 in Accounts Payable—OLB.) July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3. 7 Sold merchandise to Brill Co. for $11,500 under credit terms of 2/10, n/60, FOB destination, invoice dated July 7. The merchandise had cost $7,750. 10 Purchased merchandise from Rupert Co. for $14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. 11 Paid $300 cash for shipping charges related to the July 7 sale to Brill Co. 12 Brill returned merchandise from the July 7 sale that had cost Menards $1,450 and been sold for $2,000. The merchandise was restored to inventory. 14 After negotiations with Rupert Co. concerning problems with the merchandise purchased on July 10, Menards received a credit memorandum from Rupert granting a price reduction of $1,200. 15 At OLB's request, Menards paid $200 cash for freight charges on the July 3 purchase, reducing the amount owed to OLB. 17 Received balance due from Brill Co. for the July 7 sale less the return on July 12. 20 Paid the amount due Rupert Co. for the July 10 purchase less the price reduction granted on July 14. 21 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point, invoice dated July 21. The merchandise had cost $7,000. 24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Menards sent Brown a credit memorandum for $1,000 toward the $11,000 invoice to resolve the issue. 30 Received Brown's cash payment for the amount due from the July 21 sale less the price allowance from August 24. 31 Paid OLB Corp. the amount due from the July 3 purchase.

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000

Marcelino Co.'s March 31 inventory of raw materials is $80,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $363,000. Overhead costs incurred in April are: indirect materials, $50,000; indirect labor, $23,000; factory rent, $32,000; factory utilities, $19,000; and factory equipment depreciation, $51,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow.

                Job 306                 Job 307                 Job 308                  

Balances on March 31                                                                                                                                                                                     

Direct materials                                $              29,000                                   $              35,000                                                                    

Direct labor                                         20,000                                                   18,000                                                                    

Applied overhead                                            10,000                                                   9,000                                                                      

Costs during April                                                                                                                                                                                              

Direct materials                                                135,000                                                                 220,000                                                 $                 100,000                  

Direct labor                                         85,000                                                   150,000                                                                 105,000                  

Applied overhead                                            ?                                                              ?                                                              ?               

Status on April 30             Finished (sold) Finished (unsold)                             In process

    Materials purchases (on credit).

    Direct materials used in production.

    Direct labor paid and assigned to Work in Process Inventory.

    Indirect labor paid and assigned to Factory Overhead.

    Overhead costs applied to Work in Process Inventory.

    Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)

    Transfer of Jobs 306 and 307 to Finished Goods Inventory.

    Cost of goods sold for Job 306.

    Revenue from the sale of Job 306.

    Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

Prepare journal entries for the month of April to record the above transactions.

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