Question
During 2014, the company experienced the following events: 1. Purchased inventory that cost $5,400 on account from Bivins Company under terms 2/10, n/30. The merchandise
During 2014, the company experienced the following events:
1. | Purchased inventory that cost $5,400 on account from Bivins Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $490 were paid in cash. |
2. | Returned $450 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. |
3. | Paid the amount due on its account payable to Bivins Company within the cash discount period. |
4. | Sold inventory that had cost $5,900 for $8,900 on account, under terms 2/10, n/45. |
5. | Received merchandise returned from a customer. The merchandise originally cost $490 and was sold to the customer for $790 cash. The customer was paid $790 cash for the returned merchandise. |
6. | Delivered goods FOB destination in Event 4. Freight costs of $590 were paid in cash. |
7. | Collected the amount due on the account receivable within the discount period. |
8. | Took a physical count indicating that $1,600 of inventory was on hand at the end of the accounting period. I just need to know what the correct values would be for 2,3, 7,8. I have posted a picture below showing the missing values. Please show all work. |
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