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Please solve the following instructions On March 1, 2022, Company Z had 1800 merchandise inventories at a cost of $59.90 each. The company uses periodic
Please solve the following instructions
On March 1, 2022, Company "Z" had 1800 merchandise inventories at a cost of $59.90 each. The company uses periodic inventory system and has completed the following merchandising transactions during the month: March. 3 Purchased 5000 merchandise at $61.90 each from Company " X ", terms 3/10. n/60, FOB shipping point, appropriate party also paid $2000 freight charges on that day. 9 Returned 200 merchandise due to damage during shipment to Company " X ", Company " X " approved credit for the damage. 12 Paid Company " X " in full. 17 Sold 5000 merchandise on account to Company " Y " for $99.90 each, terms 2/10, n/60, FOB destination, appropriate party also paid $1500 for freight charges. 21 Purchased 2000 merchandises at $63.90 each from Company "L", terms 1/10, n/30, FOB destination, appropriate party also paid for $1000 freight charges on that day. 30 Received payment from Company " Y " in full. Merchandise inventory on March 31st is worth of $222,840. Page | Instructions: i. Prepare the journal entries to record these transactions on the books of Company "Z" using periodic inventory system. [6] ii. Prepare the cost of goods sold section for the month ended 31st March 2022 for Company "Z". [4]Step by Step Solution
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