Question
Information related to D Gel Co., a merchandising company, is presented below. On April 5, purchased merchandise from Timpson Company for $25,000 terms 2/10, net/30
- Information related to D Gel Co., a merchandising company, is presented below.
On April 5, purchased merchandise from Timpson Company for $25,000 terms 2/10, net/30
On April 6, paid freight costs of $900 on merchandise purchased from Timpson.
On April 8, returned damaged merchandise to Timpson Company and was granted a $4,000 credit for returned merchandise.
On April 15, paid the amount due to Timpson Company in full.
On April 16, sold $500,000 of merchandise to Trump Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000.
On April 18, Trump Co. returned $27,000 of defected merchandise, purchased on April 16. The scrap value of this defective merchandise was $12000.
On April 26, DGel Co., Company received the balance due from TrumpCo.
Instructions Prepare the journal entry to record the transaction under a perpetual inventory system and the periodic inventory system
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
11th Edition
0131867121, 978-0131867123
