Question

Send to Gradebook Question 1 View Policies Current Attempt in Progress The following transactions occurred in April and May. Both companies use a perpetual inventory system. Apr. 5 Pharoah Company purchased merchandise from DeVito Company for $12,300, terms 2/10, 1/30,FOB shipping point. DeVito had paid $8,500 for the merchandise. 6 The correct company paid freight costs of $270. 8 Pharoah Company returned damaged merchandise to DeVito Company and was given a purchase allowance of $2.000. DeVito determined the merchandise could not be repaired and sent it to the recyclers. The merchandise had cost Devito $1.382. May 4 Pharoah paid the amount due to DeVito Company in full. Prepare the journal entries to record the above transactions for Pharoah Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record

Answer 1

In the books of Pharaoh compony Journal titles and exploncition Dobit (8) Date Account Credil (8) Apr. s 12,300 1 Purchase Account Payable I (Being merchandine 12,300 purchared I Apr. 6 270 290 | freight Cash F (Berry freight paid) Apr. & l Accounts Payable - Purchase Return 2,000 2,000 May 4 10300 | Accounts Payable cash b 10,300

n. In the books of Dovito Company Journal Account Title and Epp lonation Debit ($) 1 Cradition Date I Ars | Account Receivable | 12,300 fab Sales i the Being good sold) . I Cost of Goods Sold L 8,5200 - Inventory (Being coas recorded) at Apr. 5 8,500 2,000 sl Sales Return L accounts Receivable (Being goods returned) a 2,000 . & 1382 Loss on damaped Goods - cost of Good sold |(Berry lon booked) 1389 Cash Account Receivable (Berry payment receired) | 10300 10300

I Computation of Coroes Profst? Ant(s) Solen less: Return Amount (8) 12,300 (2000) 10.300 COGS Goods (8500 - 1382) damages Gross Porfest (7118) (13821