16. PQR Distributors applies the perpetual inventory system and the gross method of recording invoices. During...
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16. PQR Distributors applies the perpetual inventory system and the gross method of recording invoices. During the month of May the following transactions occurred May 1 Purchased merchandise from RST Inc. for $12,700 under credit terms of 2/15, n/45, FOB destination, and invoice dated May 1. May 3 Sold merchandise to DFE Corp. for $8,000 under credit terms of 1/10, n/30, FOB destination, invoice date May 3. The merchandise had cost $5,000. May 5 Paid $350 cash for shipping charges related to the May 3 sale. Returned $2,000 of the merchandise purchased on May 1 to RST Inc.. May 6 May 7 May 13 DFE Corp. returned merchandise from the May 3 sale that had cost PQR $625 and had been sold for $1,000. The merchandise was restored to inventory. Received the balance due from DFE Corp. less the return. May 14 Paid the amount due RST Inc.. Using the attached T-account template (or a spreadsheet with the same level of account level detail) prepare the entries to recognize the transactions listed above. Label the entries with the date of the transaction. 16. PQR Distributors applies the perpetual inventory system and the gross method of recording invoices. During the month of May the following transactions occurred May 1 Purchased merchandise from RST Inc. for $12,700 under credit terms of 2/15, n/45, FOB destination, and invoice dated May 1. May 3 Sold merchandise to DFE Corp. for $8,000 under credit terms of 1/10, n/30, FOB destination, invoice date May 3. The merchandise had cost $5,000. May 5 Paid $350 cash for shipping charges related to the May 3 sale. Returned $2,000 of the merchandise purchased on May 1 to RST Inc.. May 6 May 7 May 13 DFE Corp. returned merchandise from the May 3 sale that had cost PQR $625 and had been sold for $1,000. The merchandise was restored to inventory. Received the balance due from DFE Corp. less the return. May 14 Paid the amount due RST Inc.. Using the attached T-account template (or a spreadsheet with the same level of account level detail) prepare the entries to recognize the transactions listed above. Label the entries with the date of the transaction.
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