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Bedding for More received a shipment of bed sheets on July 2, 2022. The value of the bed sheets was $9,000 and the sheets were
Bedding for More received a shipment of bed sheets on July 2, 2022. The value of the bed sheets was $9,000 and the sheets were shipped FOB shipping point. Freight charges came to $360. This company uses the perpetual inventory system. Do not enter dollar signs or commas in the input boxes. Required a) Prepare the journal entry to record the receipt of goods by Bedding for More, assuming the payment will be made in August. Date Account Title and Explanation 2022 Jul 2 0 To purchased inventory Debit Credit b) The bed sheets delievered to Bedding for More were the wrong material. After some negotiation, the manager agreed to keep the products with a 14% allowance. Prepare the journal entry on July 18, 2022 to record the purchase allowance. Assume that all bed sheets are still in inventory. Allowances are not granted on freight charges. Date 2022 Account Title and Explanation Debit Credit Jul 18 To record purchase allowance c) Journalize the transaction for Bedding for More when the payment is made on August 2, 2022. Date Account Title and Explanation 2022 Aug 2 Debit Credit To pay for the goods
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