This information relates to Hans Olaf Co.: 1. On April 5 purchased merchandise from D. DeVito Company
Question:
This information relates to Hans Olaf Co.:
1. On April 5 purchased merchandise from D. DeVito Company for $18,000, terms 2/10, n/30.
2. On April 6 paid freight costs of $900 on merchandise purchased from D. DeVito.
3. On April 7 purchased equipment on account for $26,000.
4. On April 8 returned damaged merchandise to D. DeVito Company and was granted a
$3,000 allowance.
5. On April 15 paid the amount due to D. DeVito Company in full.
Instructions
(a) Prepare the journal entries to record the transactions listed above on the books of Hans Olaf Co.
(b) Assume that Hans Olaf Co. paid the balance due to D. DeVito Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471347743
2nd Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso