Question
Matheson Corporation is a merchandising business that buys and sells laptops. Matheson uses a perpetual inventory system to record its transactions. The company had the
Matheson Corporation is a merchandising business that buys and sells laptops. Matheson uses a perpetual inventory system to record its transactions. The company had the following inventory related transactions in May 201.
May 2 Purchased merchandise from Tech Suppliers for $12,000 on account, terms 2/10, n/30, FOB Destination.
May 8 Returned $4,000 worth of merchandise to Tech Suppliers as it was damaged.
May 9 Sold merchandise to Smart Buy for $16,000 on account, terms 2/10, n/60. FOB
Destination. The merchandise originally cost Matheson $9,000.
May 11 Paid Tech Suppliers in full for the amount due to them.
May 18 Received payment from Smart Buy for the sale on May 9th.
May 25 Paid $500 transportation charges regarding the sale on May 9th.
REQUIRED: Prepare the journal entries for the above transactions for Matheson Corporation.
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Culture Audits Supporting Organizational Success Information Line
Authors: Cynthia Solomon
1st Edition
156286386X, 978-1562863869
