Prepare journal entries to record each of the following purchases transactions of a merchandising company. Assume a perpetual inventory system using the gross method for recording purchases. Oct. 1 Purchased $1,500 of goods. Terms of the sale are 4/10, n/30, and FOB shipping point; the invoice is dated October
question 1
Prepare
Oct. 1 Purchased $1,500 of goods. Terms of the sale are 4/10, n/30, and FOB shipping point; the invoice is dated October 1.
Oct. 3 Paid $50 cash for freight charges from UPS for the October 1 purchase.
Oct. 7 Returned $80 of the $1,500 of goods from the October 1 purchase and received full credit.
Oct. 11 Paid the amount due from the October 1 purchase, less the return on October 7.
Oct. 31 Assume the October 11 payment was never made and, instead, payment of the amount due on the October 1 purchase, less the return on October 7, occurred on October 31.
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