The following transactions occurred in April and May. Both companies use a periodic inventory system. Apr.5 6 8 May 4 Oriole Company purchased merchandise from Pharoah Company for $12,200, terms 2/10, n/30, FOB shipping point. Pharoah had paid $7,600 for the merchandise. The correct company paid freight costs of $340. Oriole Company returned damaged merchandise to Pharoah Company and was given a purchase allowance of $1,700. Pharoah determined the merchandise could not be repaired and ent it to the recyclers. The merchandise had cost Pharoah $1,059. Oriole paid the amount due to Pharoah Company in full.
The following transactions occurred in April and May. Both companies use a periodic inventory system. Apr.5 6 8 May 4 Oriole Company purchased merchandise from Pharoah Company for $12,200, terms 2/10, n/30, FOB shipping point. Pharoah had paid $7,600 for the merchandise. The correct company paid freight costs of $340. Oriole Company returned damaged merchandise to Pharoah Company and was given a purchase allowance of $1,700. Pharoah determined the merchandise could not be repaired and ent it to the recyclers. The merchandise had cost Pharoah $1,059. Oriole paid the amount due to Pharoah Company in full.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare pe journal entries to record these transactions on the books of Pharoah Company using a periodic inventory system
instead of a perpetual system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If
no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the
problem. List all debit entries before credit entries.)
Date
Account Titles
Debit
Credit
Transcribed Image Text:The following transactions occurred in April and May. Both companies use a periodic inventory system.
Apr. 5
6
8
May 4
Oriole Company purchased merchandise from Pharoah Company for $12,200, terms 2/10, n/30, FOB shipping point.
Pharoah had paid $7,600 for the merchandise.
The correct company paid freight costs of $340.
Oriole Company returned damaged merchandise to Pharoah Company and was given a purchase allowance of $1,700.
Pharoah determined the merchandise could not be repaired and ent it to the recyclers. The merchandise had cost
Pharoah $1,059.
Oriole paid the amount due to Pharoah Company in full.
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