Question

Pre the many to record the recette di ty At The Hed g e para made in September Parche ry The bed showed the Beds were the wrong 2019 record the purchase Date Acoust Title and t o De in the manager d e products with a weather r y A ce went on the that we het we Credit st 24 Ja Date r l The Beds when the p Account Tinand Explanation Da a Creat Sep Ausste 13000

All the beds received a shipment of bed sheets on August 8th, 2019. The value of the bed sheets was $13,000 and the sheets were shipped FOB shipping point. Freight charges came to $350. The company uses the perpetual inventory system.

a) Prepare the journal entry to record the receipt of good by All the Beds, assuming the payment will be made in September

c) Journal the transaction for All the Beds when the payment was made on September 8th, 2019

Answer 1

S. no. Account title and Explanation ! Debit Credit Here Freight is not considered since it is FOB $13,000.00 Pricing and Freight has to be borne by customer $13,000.00 a. Merchandise Inventory Accounts Payable (Purchased Inventory) (Balance of accounts payable = Purchase $13000 - Allowance $2340 = $10660 • $10,660.00 Accounts Payable Cash (Payment for the goods) $10,660.00