Question

On June 10, Wildhorse Company purchased $8,500 of merchandise on account from Swifty Company, FOB shipping point terms 2/10, 1/30. Wildhorse pays the freight costs of $570 on June 11. Damaged goods totaling $450 are returned to Swifty for credit on June 12. The fair value of these goods is $75. On June 19, Wildhorse pays Swifty Company in fullless the purchase discount. Both companies use a perpetual inventory system.

Answer 1

1 2 Solution 3 4 5 6 7 8 9 10 11 Swifty company Date Account Title and explanation Debit Credit Jun-10 Account receivable $ 8500 Sales revenue $ 8500 (to record credit sales) Jun-10 cost of goods sold 5,200 Inventory 5,200 (To record cost of merchandise sold) Jun-12 Sales Returns and Allowances 570 Account recivable 570 (To record credit granted to Wildhorse company for returned goods) 75 Jun-12 Inventory 75 Cost of Goods Sold (To record cost of goods returned) Jun-19 Cash 7771.4 Sales Discounts 793082% 158.6 Accounts Receivable 8500-570 7930 (To record collection within 2/10, n/30 discount period from Wildhorse company) 12 = 75 13 14 15 16 17 18 19 20 21 22 23 NOTE - PLEASE UPVOTE IT SHALL BE A GREAT FAVOR THANKS 24