Question

Cash Inventory Land Common stock Retained earnings $13,800 6,000 3.300 11.000 12,100 During Year 2, the company experienced the following events: 1. Purchased inventory that cost $12,500 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $930 were paid in cash. 2. Returned $600 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold inventory that had cost $10.500 for $18.500 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,850 and was sold to the customer for $2,400 cash. The customer was paid $2.400 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $820 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Recognized accrued interest income of $350. 9. Took a physical count indicating that $4,400 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.) a. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 . 14 Record entry Inventory purchased on account from Ross company terms 2/10, n/30. Note: Enter debits before credits. Event General Journal Debit Credit

Answer 1

Please find the answer for the aforesaid question in the below attached images.

930 12500 (Being inventory purchased & dreight Jownal Entries Plant Particulars Debit (in d) Credit I 'Inyentoszy na Dr 12500 | freacht fle r . Dv To cash alebo TO Ross company cont paid by company 2 . Company tle ---..Dr 600 (berria in ventory sretomed due to damage of insanit) If Here, the seller agreed to retom cash paid on freight but hasn't retumed yet. Hence, no cash is debited J Ross Company Dyl 11900 and To Cash Aledo (Being amount paid to Rossco. ) To Inventory A/ 212500 - 600 11900 Debtor ri n. Drlig 500 18500 To Sales ne so (Being inventory sold on account) T Sales Returns the To Debtor (Being merchadise received from 1 the customer) Ta - pr 2400 9:03 9400

{esodit (e) 200 820 - Tournal. Condries contindinn Dale Pantiendan Dobili con Cashle To be fovight (one ereader, Solo con il qiron Hence it is almal hal weight is bounne by costumen) 3 | Cali 4 . .. .. Đi | 1 0 0 C18600-2400 To Doblorine L Ucustomer 8 Decreed Interest Docomo Ale. A 350 70 Income ne (Being the acrved wheneet untbono le recognized (Boing cash received from) 16100 1 Iso LI Calculation de notre en Less: Cost of goods .cold (iomo.reso) Closing Inventory Amice) 6000 12000 8650 9810 Giren the physical count of Inventory indicates $4400 alithe end Tak peniod. Hence, the inventory shall bo vreduced by $5450 ..JE for San Adjustment in Inventing the ... Dr Suso 70 invordony hrad SULO . (Boing Inventory adjusted to physical count)