2C distributes laptops to retail stores and extends credit terms 3/15, n/60 to all its customers. During
Question:
2C distributes laptops to retail stores and extends credit terms 3/15, n/60 to all its customers. During the month of June 2021, the following merchandising transactions occurred:
June 12: Purchased merchandise from KG-Co on account for $12,000, terms 1/10, n/35; FOB shipping point, the appropriate party made a cash payment of $220 for freight.
June 14: Sold merchandise to LT Co on account for $34,000 FOB destination. The cost of goods sold is $22,000. The appropriate party made a cash payment of $110 for freight.
June 17: Received a credit note of $2,300 from KG-Co for merchandise returned.
June 19: Paid KG-Co in full.
June 23: Granted LT Co $600 credit for merchandise returned costing $450.
June 26: Received payment in full from LT Co.
Instructions:
(a) Journalize June's transactions using a perpetual inventory system.
(b) Record the appropriate adjusting entry on June 30 assuming that your theoric ending inventory before adjustment is $18,000 while your physical count reveals an actual ending inventory of $20,000.
Expert Answer:
a Journalizing Junes Transactions Perpetual Inventory June 12 Debit Inventory Laptops 12000 Credit A... View the full answer
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
