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Pharoah Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Pronghorn Ltd. for $32,000,
Pharoah Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Pronghorn Ltd. for $32,000, terms 2/10, n/30, FOB shipping point. 6 The appropriate company paid freight costs of $800 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5,200. 8 Returned merchandise to Pronghorn and received a credit of $3,000. The merchandise was returned to inventory for future resale. 30 Paid the amount due to Pronghorn in full. Additional information: The cost of the merchandise sold on April 3 was $21,700. The cost of the merchandise returned on April 8 was $1,950. Pronghorn uses a perpetual inventory system. Record the transactions in the
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