Question

an na 10 Naveen C rmpany purchase d $8 100 of marchandisīfram Jafrah Co mpany, OB shipping paint terma 2/10 n 30. Na een pays the fraaght à ta af $550 an Ine 11. Damaged goods totaling $400 are ratu e 19, Naveen peys Jarrah Company in full, less the purchase discount. Both companies use perpetual nventory syste ad ta Irfah far credit en lune 12. ㄲ far value of the se goda $200. (a) Prepsre separste entries for each transaction on the books of Naveen Company, (Record journal entries in the order in which they must have occurred. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Tities and Explanation (b Prepare separate entries for each transaction for Jarrah Company. The merchandse purchased by Naveen on lure 10 had cost le rah 54,960 (Credit account titles are automatic //y indented when amount is entered. Do not indent manta ,r Acxount Titles and Explanabon une 10 Ta record credtsae.) Te recard cast of merchaadiseok une 12 a record cost of merchandise returned.) June 19

Answer 1

Solution Account Titles and Explanation Debit Credit Date June 10 Merchandise Inventor 8,100 Account Payables 8,100 (To record credit purch ase June 11 Merchandise Invent 550 Cash 550 To record freight cost June 12 Accounts Payables 400 Merchandise Invent 400 o record return of demaged goods) June 19 Accounts Payables 7,700 Cash 7,546 Merchandise Invent 154 To record payment to Jarrah Compan Account Titles and Explanation Debit Date Credit June 10 Accounts Receivables 8,100 Sales Revenue 8,100 To record credit sale June 10 Cost of Merchandise Sold 4,960 Merchandise Invent 4,960 To record cost of merchandise sold Sales Returns and allowances June 12 400 Accounts Receivables 400 To record merchandise returned June 12 Merchandise Inventor 200 Cost of Merchandise Sold 200 To record cost of merchandise returned June 19 Cash 7,546 Sales Discounts 154 Accounts Receivables 7,700 (To record payment received