This information relates to Rice Co. transactions. 1. On April 5, purchased merchandise from Jax Company for
Question:
This information relates to Rice Co.
transactions. 1.
On April 5, purchased merchandise from Jax Company for $28,000, terms 2/10, n/30.
(LO 2), ap 2.
On April 6, paid freight costs of $700 on merchandise purchased from Jax. 3.
On April 7, purchased equipment on account for $30,000. 4.
On April 8, returned $3,600 of April 5 merchandise to Jax Company. 5.
On April 15, paid the amount due to Jax Company in full.
Instructions
(a) Prepare the journal entries to record the transactions listed above on Rice Co.’s books.
Rice Co. uses a perpetual inventory system.
(b) Assume that Rice Co. paid the balance due to Jax 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: 9781119316022
8th Edition
Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt