Edwardo Auto Parts Company and Spoon Company engaged in the following transactions with each other during August
Question:
Edwardo Auto Parts Company and Spoon Company engaged in the following transactions with each other during August 1999:
Aug. 15 Edwardo Auto Parts Company purchased merchandise on account with a list price of \(\$ 192,000\) from Spoon Company. Trade discounts of \(20 \%\) and \(10 \%\) were allowed. Terms were \(2 / 10, \mathrm{n} / 30\), FOB destination, freight prepaid.
16 The seller paid the freight charges, \(\$ 2,400\).
17 The buyer requested an allowance of \(\$ 4,512\) against the amount due because the goods were damaged in transit.
20 The seller granted the allowance requested on August 17.
The buyer paid the amount due on the last day of the discount period.
Required Record all of the entries required on the books of both the buyer and the seller.
Step by Step Answer:
Financial Accounting A Business Perspective
ISBN: 9780072289985
7th Edition
Authors: Roger H. Hermanson, James Don Edwards