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Exercise 5-4 On June 10, Blossom Company purchased $6,400 of merchandise on account from Swifty Company, FOB shipping point, terms 2/10, n/30. Blossom Company pays
Exercise 5-4 On June 10, Blossom Company purchased $6,400 of merchandise on account from Swifty Company, FOB shipping point, terms 2/10, n/30. Blossom Company pays the freight costs of $540 on June 11. Damaged goods totaling $400 are returned to Swifty for credit on June 12. The fair value of these goods is $75. On June 19, Blossom Company pays Swifty Company in full, less the purchase discount. Both companies use a perpetual inventory system Your answer is partially correct. Try agairn Prepare separate entries for each transaction on the books of Blossom Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) DateAccount Titles and Explanation Debit Credit | June 10 Inventory 6400 Accounts Payable 6400 June 11Inventory 540 Cash 540 June 12 Accounts Payable 400 Inventory 400 lune 19 L Accounts Pavable Inventory 180 Cash 5820 LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE VIDEO: APPLIED SKILLS Your answer is partially correct. Try again. Prepare separate entries for each transaction for Swifty Company. The merchandise purchased by Blossom Company on June 10 had cost Swifty $4,800. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Date Account Titles and Explanation Debit Credit June 10 Accounts Receivable 6400 Sales Revenue 6400 To record credit sale) June 10 Cost of Goods Sold 4,800 4,800 (To record cost of merchandise sold)
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