Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

have trouble with july 24 and july 30 GL0401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following

have trouble with july 24 and july 30
image text in transcribed
GL0401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Lee's, which uses the perpetual Inventory system and the gross method. (Hint it will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Clinton) July 1 Purchased merchandise fron Clinton Company for $6,400 under credit terms of 1/15, n/30, FOB shipping point, July 2 Sold merchandise to Allen Company for $1,100 under credit terns of 2/10, 1/68, FOB shipping point, invoice dated July 2. The merchandise had cost $660. July 3 Paid $205 cash for freight charges on the purchase of July 1. July 9 Purchased merchandise fron Garcia Company for $2,400 under credit terms of 2/15, 1/68, FOB destination, invoice July 11 Returned see of merchandise purchased on July 9 from Garcia Company and debited its account payable for that amount. July 12 Received the balance due from Allen Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Clinton Company within the discount period. July 19 Sold merchandise that cost $1,188 to Taylor Company for $1.600 under credit terms of 2/15, 1/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $300 to Taylor Company for merchandise sold on July 19 and credited Taylor's accounts receivable for that amount. July 24 Paid Garcia Company the balance due, net of discount. July 38 Received the balance due from Taylor Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $4,400 to Allen Company for $7,400 under credit terms of 2/10, 1/68, FOB shipping point, invoice dated July 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics Of Accounting Information In Markets

Authors: Peter Ove Christensen, Gerald Feltham

2nd Edition

1402072295, 9781402072291

More Books

Students also viewed these Accounting questions

Question

plan and structure your literature review;

Answered: 1 week ago

Question

establish an effective note-taking and recording system;

Answered: 1 week ago

Question

identify what you need to read and where to find it;

Answered: 1 week ago