Question
Hello, I need help with the following exercise. Question 3 Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms
Hello, I need help with the following exercise.
Question 3Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted, FOB Destination will apply to all purchases & sales. The value of inventory is based on periodic system. On January 1, 2016, beginning inventory consisted of 400 units of widgets costing $10 each. Alpha prepares monthly income statements. The following events occurred during the month of Jan.:
| Date | Activity |
a. | Jan. 3 | Purchased on account 350 widgets for $11 each. |
b. | Jan. 5 | Sold on account 500 widgets for $30 each. Paid freight out with petty cash of $150. |
c. | Jan. 10 | Purchased on account 650 widgets for $12 each. |
d. | Jan. 11 | Shipping cost for the January 10 purchased merchandise was $400 was paid with achequeby Alpha directly to the freight company. |
e. | Jan. 12 | Returned 50 widgets received from Jan. 10 purchase as they were not the correct item ordered. |
f. | Jan. 13 | Paid for the purchases made on Jan. 3. |
g. | Jan. 21 | Sold on account 550 widgets for $30 each. Paid freight out with petty cash of $250. |
h. | Jan. 22 | Authorize credit without return of goods for 50 widgets sold on Jan. 21 when customer advised that they were received in defective condition. |
i. | Jan. 25 | Received payment for the sale made on Jan. 5. |
j. | Jan. 26 | Paid for the purchases made on Jan. 10. |
k. | Jan. 31 | Received payment for the sale made on Jan. 21. |
Use this information to prepare the General Journal entries (without explanation) for the January events. If no entry is required then enter the date and write "No EntryRequired."
General Journal:
Date | Accounts | Debit | Credit | |
a. | ||||
b. | ||||
c. | ||||
d. | ||||
e. | ||||
f. | ||||
g. | ||||
h. | ||||
i. | ||||
j. | ||||
k. | ||||
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