E6-22 (Supplement 6A) Recording Journal Entries for Purchases, Purchase Discounts (Net Method), and Purchase Returns Using...
E6-22 (Supplement 6A) Recording Journal Entries for Purchases, Purchase Discounts (Net Method), and Purchase Returns Using a Perpetual Inventory System [LO 6-S1]
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:
June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.
June 5 Returned goods costing $1,100 to Diamond Inc. for credit on account.
June 6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.
June 11 Paid the balance owed to Diamond Inc.
June 22 Paid Club Corp. in full.
Required: Prepare journal entries to record the transactions, assuming Ace records discounts using the net method in a perpetual inventory system. Forfeited discounts are charged to Other Operating Expenses. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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E6-22 (Supplement 6A) Recording Journal Entries for Purchases,
Purchase Discounts (Net Method), and Purchase Returns Using...
E6-8 Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System [LO 6-3] During...
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3 Exercise 4-3 Recording purchases, purchases returns, and purchases allowances LO P1 Prepare journal entries to...
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Journalize the following transactions for Perez Company using the gross method of accounting for purchase discounts....
Journalize the following transactions for Perez Company using the gross method of accounting for purchase discounts. Assume a perpetual inventory system. October 9 Purchased goods from Long Company on account, $6,000, terms 2/10, n/30. October 15 Returned merchandise to Long Company that was previously purchased on account, $600. October 20 Paid the amount due to Long Company. Date Account Title Debit Credit ✓ (Choose one) Accounts Payable Accounts Receivable Cash Cost of Goods Sold Purchase Discounts Last Freight Out Merchandise...
events was as follows: June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10,n/30 Returned goods costing $1,100 to Diamond Inc. for full credit Purchased goods from Club Corp. for $1,000 with terms 2/10, 1/30. 11 Paid the balance owed to Diamond Inc. Paid Club Corp. in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on na at the beginning of the month. Calculate the cost of inventory as...
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Novak Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1. (1) Novak purchased $67,000 of inventory, terms 2/10, 1/30, FOB shipping point (2) Novak paid freight costs of $1,250. (b) On July 3, Novak returned damaged goods and received credit of $6,700. (c) On July 10, Novak paid for the goods. Prepare all necessary journal entries for Novak. (If no entry is required, select "No Entry for the account tities...
sales returns and allowances and sales discounts are
EX5#13: Mack's Corporation, uses a perpetual inventory system, it purchased on account $2,000 of merchandise on July 5. Credit terms are 2/10, n/30. It returned $400 of the merchandise on July 9. When Mack's pays its bill on August 5, the journal entry will require A. Debit to Accounts Payable for $2000. B. Credit to Accounts Payable for $1600. c. Credit to Cash for $1600. D. Credit to Cash for $1568. 20...
3 Exercise 4-3 Recording purchases, purchases returns, and purchases allowances LO P1 Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. nts Apr. eBook 2 Purchased $5,700 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $350 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that...
3 Exercise 4-3 Recording purchases, purchases returns, and purchases allowances LO P1 Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. nts Apr. eBook 2 Purchased $5,700 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $350 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that...
Journalize the following transactions for Perez Company using the gross method of accounting for purchase discounts. Assume a perpetual inventory system. October 9 Purchased goods from Long Company on account, $6,000, terms 2/10, n/30. October 15 Returned merchandise to Long Company that was previously purchased on account, $600. October 20 Paid the amount due to Long Company. Date Account Title Debit Credit ✓ (Choose one) Accounts Payable Accounts Receivable Cash Cost of Goods Sold Purchase Discounts Last Freight Out Merchandise...
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