Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Aug 1 Purchased merchandise from Sherif Company for $4,600 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to
Aug 1 Purchased merchandise from Sherif Company for $4,600 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Farid Corp. for $3,220 under credit terms of 2/10, 1/60, FOB destination, invoice dated August 5. The merchandise had cost $2,299. 8 Purchased merchandise from Shady Corporation for $3,900 under credit terms of 1/10.0/45, FOB shipping point invoice dated August 8. The invoice showed that at Shahab's request, Shady paid the $240 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges) 9 Paid $110 cash for shipping charges related to the August 5 sale to Farid Corp 10 Farid returned merchandise from the August 5 sale that had cost Shehab $383 and been sold for $537 The merchandise was restored to inventory 12 After negotiations with Shady Corporation concerning problems with the merchandise purchased on August 8, Shehab received a credit memorandum from Shady granting a price reduction of $589, 14 At Sherif's request, Shehab paid $350 cash for freight charges on the August 1 purchase, reducing the amount owed to Sherit 15 Received balance due from Farid Corp. for the August 5 sale less the return on August 10. 18 Paid the amount due Shady Corporation for the August 8 purchase less the price reduction granted. 19 Sold merchandise to Romany Co. for $2.760 under credit terms of 1/10, n/30. FOB shipping point invoice dated August 19. The merchandise had cost $1,915. 22 Romany requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Shehab sent Romany a $460 credit memorandum to resolve the issue. 29 Received Romany's cash payment for the amount due from the August 19 sale. 30 Paid Sherif Company the amount due from the August 1 purchase. Prepare journal entries to record the above merchandising transactions of Shehab Company, which applies the perpetual inventory system
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b9b2c3dfb1_835669b9b2bcd6a5.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started