Bedrock Wholesale has the following transactions during the month of October 2021: Oct. 1 Oct. 2 Oct. 6 Oct. 7 Oct. 8 Oct. 12 Purchased inventory from Fred Inc. for $25,000, FOB destination, terms 2/10 n/30. Oct. 17 The appropriate company paid $100 freight on the October 1 purchase. Returned $3,000 worth of goods to Fred as they were the wrong colour. Oct. 10 Paid Fred the entire amount owed to him. Oct. 22 Sold half of the remaining inventory purchased from Fred to Wilma Inc. for $16,000, FOB destination, terms 2/20 n/30. The appropriate company paid $450 freight on the October 7 sale. Oct. 13 The appropriate company paid $225 freight on the October 12 purchase. Sold half of the inventory purchased from Barney to Betty Ltd. for $10,000, FOB shipping point, terms 1/10 n/20. Purchased inventory worth $15,000 from Barney Inc., FOB shipping point, terms 3/15 n/45. Oct. 18 The appropriate company paid $80 freight on the October 17 sale. Betty returned $3,000 worth of the goods bought on October 17 as you shipped the wrong size. Oct. 25 Betty paid their outstanding balance. Oct. 30 Wilma paid their outstanding balance. Oct. 31 Paid Barney the entire amount owed to him.
How would Bedrock Wholesale record the October 18 transaction?
a. Decrease Cash and increase Inventory
b. Decrease Cash and increase Freight Expense
c. Increase both Accounts Payable and Freight Expense
d. Decrease both Cash and Inventory
e. No entry is required.
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 22 transaction?
a. Increase Inventory and decrease Cost of Goods Sold $3,000 each, and decrease
b. Increase Inventory and decrease Cost of Goods Sold $2,250 each, and decrease Accounts Receivable and increase Sales Returns $3,000 each
c. Increase Inventory and decrease Cost of Goods Sold $2,250 each, and decrease Accounts Receivable and increase Sales Returns $2,250 each
d. Increase Inventory and decrease Cost of Goods Sold $2,250 each
e. Decrease Accounts Receivable and increase Sales Returns $3,000 each
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 25 transaction?
a. Increase Cash and decrease Accounts Receivable only
b. Increase Cash and decrease Sales Discounts (increasing net sales), and decrease Accounts Receivable
c. Increase Cash and Sales Discounts (reducing net sales), and decrease Accounts Receivable
d. Increase Cash and decrease both Sales and Accounts Receivable
e. Increase both Cash and Sales, and decrease Accounts Receivable
Enter the letter that corresponds to your choice. (A B C D E)
How much does Betty pay Bedrock Wholesale on October 25?
How would Bedrock Wholesale record the October 30 transaction?
a. Increase Cash and decrease Accounts Receivable only
b. Increase Cash and decrease both Sales and Accounts Receivable
c. Increase both Cash and Sales, and decrease Accounts Receivable
d. Increase Cash and increase Sales only
e. Increase both Cash, Sales, and Accounts Receivable
Enter the letter that corresponds to your choice. (A B C D E)
How much does Wilma pay Bedrock Wholesale on October 30?
How would Bedrock Wholesale record the October 31 transaction?
a. Decrease Cash and Accounts Payable, and increase Inventory.
b. Decrease Cash and Inventory, and increase Accounts Payable.
c. Decrease Cash and increase both Inventory and Accounts Payable.
d. Decrease Cash and Accounts Payable only
e. Decrease Cash, Inventory, and Accounts Payable.
Enter the letter that corresponds to your choice. (A B C D E)
How much does Bedrock Wholesale pay Barney on October 31?
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