Question
Can someone let me know if I journalized this transaction correctly? A new shipment of Kawasaki Jet Ski personal watercraft for inventory was received. The
Can someone let me know if I journalized this transaction correctly?
A new shipment of Kawasaki Jet Ski personal watercraft for inventory was received. The invoice from Kawasaki USA lists the total net purchase price of $46,180, credit terms of 2/10, n/30, FOB shipping point terms, and the models shipped. Freight charges of $100.00 are included in the invoice which totals $46,280. All Merchandise purchases are recorded NET.
My journal entry for this was to debit Merchandise Inventory $46,280 and credit Accounts Payable - Kawasaki USA. Is that correct?
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