AP-19A

Inventory: Merchandising Transactions Chapter 7 AP-19A LO 8 9 10 11 Crystal Crockery, owned by Crystal Kleer, has kery, owned by Crystal Kleer has provided you with the following information about the transa occurring in March 2018. recale from Cup Makers. The amount on the invoice Mar 2 Crystal Crockery received a shipment of gift mugs for resa is $7,000 and the stated terms are 2/15, 1/45. Mar 2 Crystal Crockery paid $400 cash for shipping charges. Mar 5 The manager of Crystal Crockery checked the shipped cups and found that goods worth $700 were defective. The defective goods were returned to the supplier. Mar 13 Crystal Crockery paid the remaining invoice balance and, in doing so, OOR advantage of the early Crystal Crockery paid the remain payment discount Crystal Crockery sold the goods costing $6,174 to EatFresh Supermarket for $9,500. Mar 22 EatFresh Supermarket found 104 worth of items to be defective and returned these to Crystal Crockery The goods cannot be resold. Mar 28 The invoice showed terms 2/10, n/60. EatFresh Supermarket paid the remaining invoice balance after taking advantage of the early settlement discount The opening inventory balance was $500 and the closing inventory balance was $847. Required Assume Crystal Crockery uses the periodic inventory system. a) Prepare the journal entries to record the purchase and sales transactions. Date Account Title and Explanation Debit Credit entory: Merchandising Transactions Chapter 7 Prepare the journal entries to record the closing entries for the month using the income summary method. Assume that the accounting period for Crystal Crockery is one month. Date Account Title and Explanation Debit Credit d Prepare the cost of goods sold section of the income statement. income statement. Prepare the net purchases section of the income statement