Journal Entries Using the Periodic Inventory System The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $20,800 of merchandise on account, FOB shipping point, terms 1/15, n/30. 5 Paid freight of $300 on the January 2 purchase. 6 Returned $2,600 of the merchandise purchased on January 2. 13 Sold merchandise on account, $8,700, FOB destination, 2/10, n/30. The cost of merchandise sold was $6,400. 15 Paid freight of $200 for the merchandise sold on January 13. 17 Paid for the purchase of January 2 less the return and discount. 23 Received payment on account for the sale of January 13 less the discount. Journalize the entries to record the transactions of Air Systems Company. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 2 Purchases v Accounts Payable v Jan. 5 Freight In v Cash v Jan. 6 Accounts Payable Purchases Returns and Allowances Jan. 13 Accounts Receivable v Sales v Jan. 15 Delivery Expense v Cash v Jan. 17 Accounts Payable v Purchases Discounts Cash Cash v Jan. 23 Accounts Receivable

Journal Entries Using the Periodic Inventory System The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $20,800 of merchandise on account, FOB shipping point, terms 1/15, n/30. 5 Paid freight of $300 on the January 2 purchase. 6 Returned $2,600 of the merchandise purchased on January 2. 13 Sold merchandise on account, $8,700, FOB destination, 2/10, n/30. The cost of merchandise sold was $6,400. 15 Paid freight of $200 for the merchandise sold on January 13. 17 Paid for the purchase of January 2 less the return and discount. 23 Received payment on account for the sale of January 13 less the discount. Journalize the entries to record the transactions of Air Systems Company. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 2 Purchases v Accounts Payable v Jan. 5 Freight In v Cash v Jan. 6 Accounts Payable Purchases Returns and Allowances Jan. 13 Accounts Receivable v Sales v Jan. 15 Delivery Expense v Cash v Jan. 17 Accounts Payable v Purchases Discounts Cash Cash v Jan. 23 Accounts Receivable

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances...

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