Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On June 30, 2020, Agawa Jewellers purchased inventory of $45.000 on account from Soumem Geme L10. a jewellery importer Terms were 2/15 45. On receiving

On June 30, 2020, Agawa Jewellers purchased inventory of $45.000 on account from Soumem Geme L10. a jewellery importer Terms were 2/15 45. On receiving the goods. Agawa checked the order and found $7,500 wont of tw not ordered but included in the invoice Agiwa retumed this amount of merchandise to Southem on July 4. On July 14 Agama paid Southem Required 1. Jumalize a necessary transactions for Agawa Jewelers, which uses the perpetual inventory system. Explanations are not required 2. Joumalize the transactions of Southem Gems Ltd., which uses the perpetual inventory system. Southem's gross margin is 40 percent, so cost of goods sold is 60 percent of sa Requirement 1. Joumalize all necessary transactions for Agawa Jewellers, which uses the perpetual inventory system Explanations are not requir Let's start by recording the June 30 receipt and invoice of inventory (Recond debits first, then credits. Exclude explanations from journal entries Round amounts to the whole dollar Date June 30 Inventory Journal Entry Accounts Debit Credi 45,000 Accounts Payable Now, record the return of unsuitable merchandise on July 4 Date 4 Accounts Payable ventory Journal Entry Accounts 45.000 Debit Credit 7,100 7,100image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Construction Accounting And Financial Management

Authors: Steven J. Peterson

3rd Edition

0132675056, 978-0132675055

More Books

Students also viewed these Accounting questions