Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I come up with these journal entries? James Company began the month of October with inventory of $21,000. The following inventory transactions occurred

image text in transcribedHow do I come up with these journal entries?
James Company began the month of October with inventory of $21,000. The following inventory transactions occurred during the month: a. The company purchased merchandise on account for $31,000 on October 12, 2016. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $560 were paid in cash. b. On October 31, James paid for the merchandise purchased on October 12. c. During October merchandise costing $18, 900 was sold on account for 529, 200. d. It was determined that inventory on hand at the end of October cost $33, 350. Required: Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions

Question

It can be physically harmful.

Answered: 1 week ago