Information related to Wildhorse Co. is presented below. 1. 2. On April 8, returned damaged merchandise to Swifty Company and was granted a $4,400 credit for returned merchandise. On April 15, paid the amount due to Swifty Company in full. (Note: On April 5, purchased merchandise from Swifty Company for $24,000, terms 2/10, net/30, FOB shipping point.) Prepare the journal entries to record these transactions on the books of Wildhorse Co. under a perpetual inventory system.
Information related to Wildhorse Co. is presented below. 1. 2. On April 8, returned damaged merchandise to Swifty Company and was granted a $4,400 credit for returned merchandise. On April 15, paid the amount due to Swifty Company in full. (Note: On April 5, purchased merchandise from Swifty Company for $24,000, terms 2/10, net/30, FOB shipping point.) Prepare the journal entries to record these transactions on the books of Wildhorse Co. under a perpetual inventory system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Information related to Wildhorse Co. is presented below.
1.
2.
On April 8, returned damaged merchandise to Swifty Company and was granted a $4,400 credit for returned
merchandise.
On April 15, paid the amount due to Swifty Company in full. (Note: On April 5, purchased merchandise from Swifty
Company for $24,000, terms 2/10, net/30, FOB shipping point.)
Prepare the journal entries to record these transactions on the books of Wildhorse Co. under a perpetual inventory system.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
April 8
April 15
Account Titles and Explanation
Accounts Payable
Cash
Debit
4400
Credit
4400
NI
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