Chapter 13 Current Liabilities and Contingencies

Need help with the red marks! Thanks.

Cullumber Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts.

(a)		On July 1, (1) Cullumber purchased $80,000 of inventory, terms 1/10, n/30, FOB shipping point. (2) Cullumber paid freight costs of $1,207.
(b)		On July 3, Cullumber returned damaged goods and received credit of $8,000.
(c)		On July 10, Cullumber paid for the goods.

Prepare all necessary journal entries for Cullumber.

Brief Exercise 13-1 Your answer is partially correct. Try again. Cullumber Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July1, (1) Cullumber purchased $80,000 of nventory, terms 1/10, n/30, FOB shipping point. (2) Cullumber paid freight costs of $1,207. (b) On July 3, Cullumber returned damaged goods and received credit of $8,000 (c) On July 10, Cullumber paid for the goods. Prepare all necessary journal entries for Cullumber. (If no entry is required, select "No Entry for the account tities and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit a) () puly Purchases 180,000 Pa 1.207 ht-In Cast (b) puly 3 Accounts Payablel 11,207 8,000 Purchase Returns and Allowances 16,003 C)Duly 10 lAccounts Payable ash 70,560 Purchase Discounts 1,440