Question
On June 10, Tuzun Company purchased $8,400 of merchandise from Epps Company, FOB shipping point terms 4/10, n/30. Tuzun pays the freight costs of $430
On June 10, Tuzun Company purchased $8,400 of merchandise from Epps Company, FOB shipping point terms 4/10, n/30. Tuzun pays the freight costs of $430 on June 11. Damaged goods totaling $300 are returned to Epps for credit on June 12. The fair value of these goods is $150. On June 19, Tuzun pays Epps Company in full, less the purchase discount. Both companies use perpetual inventory system.
(a) Prepare separate entries for each transaction on the books of Tuzun Company.
(b) Prepare statement entries for each transaction for Epps Company. The merchandise purchased by Tuzun on June 10 had cost Epps $5,310.
*Please present replies clearly*
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
