Prepare journal entries to record each of the merchandising
transactions assuming that the company records purchases using the
net method and a perpetual inventory
system.
Nov. | 5 | Purchased 1,450 units of product at a cost of $40 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5. | ||
Nov. | 7 | Returned 30 defective units from the November 5 purchase and received full credit. | ||
Nov. | 15 | Paid the amount due from the November 5 purchase, minus the return on November 7. |
Solution:
Date | General Journal | Debit | Credit |
---|---|---|---|
Nov. 5 | Merchandise Inventory | $58,000 | |
Accounts payable | $58,000 | ||
Nov. 7 | Accounts payable | $1,200 | |
Merchandise Inventory | $1,200 | ||
Nov. 15 | Accounts payable ($58,000-1,200) | $56,800 | |
Cash ($56,800 - 1,704) | $55,096 | ||
Merchandise Inventory ($56,800*3% ) | $1,704 |
Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases...
Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system. Nov. 5 Purchased 500 units of product at a cost of $12 per unit. Terms of the sale are 5/10, n/60; the invoice is dated November 5. Nov. 7 Returned 40 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, minus the...
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 1,500 units of product at a cost of $40 per unit. Terms of the sale are 4/10, 1/60; the invoice is dated November 5. Nov. 7 Returned 35 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, minus the return on November...
Saved mapter 4 1 Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system Book Nov. 5 Purchased 950 units of product at a cost of $12 per unit. Terms of the sale are 5/10, 1/60; the invoice is dated November 5. Nov. 7 Returned 40 defective units from the November 5 purchase and received full credit Nov. 15 Pald the amount due from the...
Prepare entries to record each of the following transactions of a merchandising company. The company records purchases using the gross method and a perpetual inventory system. Nov. 5 Purchased 1,350 units of product at a cost of $20 per unit. Terms of the sale are 4/10, ni80: the invoice is dated November 5. Nov. 7 Returned 50 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, less...
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 850 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5. Nov. 7 Returned 30 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, less the...
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual Inventory system and the gross method Nov. 5 Purchased 1,500 units of product at a cost of $40 per unit. Terms of the sale are 4/10, n/60; the invoice is dated November Nov. 7 Returned 35 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, less the return...
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 850 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5. Nov. 7 Returned 30 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, minus the...
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 1,350 units of product at a cost of $20 per unit. Terms of the sale are 4/10, n/60; the invoice is dated November 5. Nov. 7 Returned 50 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, minus the...
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual Inventory system and the gross method. Nov. 5 Purchased 400 units of product at a cost of $10 per unit. Terms of the sale are 3/10, 1/60; the invoice is dated November 5. Nov. 7 Returned 30 detective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, less the...
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 1,200 units of product at a cost of $10 per unit. Terms of the sale are 4/10, n/60; the invoice is dated November 5. Nov. 7 Returned 35 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, less the...