Description 4-2A Prepare journal entries to record the following merchandising transactions of Ruterschmidt Company, which applies...
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Description 4-2A Prepare journal entries to record the following merchandising transactions of Ruterschmidt Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable- Arotek.) Aug. 1Purchased merchandise from Arotek Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 4At Arotek's request, Ruterschmidt paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek. 5Sold merchandise to Laird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. 8Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Ruterschmidt's request, Waters paid the $140 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.) 9Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp. 10Laird returned merchandise from the August 5 sale that had cost Ruterschmidt $400 and been sold for $600. The merchandise was restored to inventory. Description 4-2A Prepare journal entries to record the following merchandising transactions of Ruterschmidt Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable- Arotek.) Aug. 1Purchased merchandise from Arotek Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 4At Arotek's request, Ruterschmidt paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek. 5Sold merchandise to Laird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000. 8Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Ruterschmidt's request, Waters paid the $140 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.) 9Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp. 10Laird returned merchandise from the August 5 sale that had cost Ruterschmidt $400 and been sold for $600. The merchandise was restored to inventory.
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