Question
must be done in 30 minutes 1.Prepare journal entries to record the following transactions for a retail store: March 2 Purchased merchandise from Alfa Company
must be done in 30 minutes
1.Prepare journal entries to record the following transactions for a retail store:
March 2 Purchased merchandise from Alfa Company under the following terms: $1,800 invoice price, 2/15, n/60, FOB shipping point.
3 Paid $125 for shipping charges on the purchase of March 2.
4 Returned to Alfa Company unacceptable merchandise that had an invoice price of $300.
17 Sent a cheque to Alfa Company for the March 2 purchase, net of the discount and the returned merchandise.
18 Purchased merchandise from Bravo Company under the following terms: $2,500 invoice price, 2/10, n/30, FOB destination.
21 After brief negotiations, received a credit memorandum from Bravo Company granting a $700 allowance on the purchase of March 18.
28 Sent a cheque to Bravo Company paying for the March 18 purchase, net of
the discount and the allowance.
4. On May 12, William Company accepted delivery of $20,000 of merchandise and received an invoice dated May 11, with terms of 3/10, n/30, FOB shipping point. When the goods were delivered, William Company paid $185 to Express Shipping Service for the delivery charges on the merchandise. The next day, William Company returned $800 of defective goods to the seller, which received them one day later. On May 21, William Company mailed a cheque to Gabriel Company for the amount owed on that date. It was received the following day.
Required
a. Present the journal entries that William Company should record for these transactions.
b. Present the journal entries that Gabriel Company should record for these transactions
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