1. On June 10, Krabby burger Shack purchased $6,000 of merchandise from Chum Bucket FOB shipping point, terms 2/10, n/30. Krabby burger Shack pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Chum Bucket for credit on June 12. On June 19, Krabby burger pays Chum Bucket in full, less the purchase discount. Both companies use a perpetual inventory system. Instructions (a) Prepare separate entries for each transaction on the books of Krabby burger Shack. (b) Prepare separate entries for each transaction for Chum Bucket.The merchandise purchased by Krabby burger Shack on June 10 had cost Bristol $3,000.

1. On June 10, Krabby burger Shack purchased $6,000 of merchandise from Chum Bucket FOB shipping point, terms 2/10, n/30. Krabby burger Shack pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Chum Bucket for credit on June 12. On June 19, Krabby burger pays Chum Bucket in full, less the purchase discount. Both companies use a perpetual inventory system. Instructions (a) Prepare separate entries for each transaction on the books of Krabby burger Shack. (b) Prepare separate entries for each transaction for Chum Bucket.The merchandise purchased by Krabby burger Shack on June 10 had cost Bristol $3,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On June 10, Blue Spruce Company purchased $8,400 of merchandise on account from Ayayai Company, FOB shipping point, terms 3/10, n/30. Blue Spruce pays the freight costs of $460 on June 11. Goods totaling $700 are returned to Ayayai for credit on June 12. On June 19, Blue Spruce pays Ayayai Company in full, less the discount. Both companies use a perpetual inventory system.
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