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Prepare journal entries for the following transactions made by Vargo Co. Vargo Co. engaged in the following transactions in October 2010. Oct. 7th: Sold merchandise
Prepare journal entries for the following transactions made by Vargo Co.
Vargo Co. engaged in the following transactions in October 2010. Oct. 7th: Sold merchandise on credit to Ken Smith, terms n/30, FOB shipping point, $3,000. Cost of merchandise was $1,800. Oct. gth: Purchased merchandise on credit from Novak Co., terms n/30, FOB shipping point, $6,000. Oct. 9th: Paid Smart Co. for shipping charges on merchandise purchased Oct. gth $254. Oct. 10th: Purchased merchandise on credit from Maras Co., terms n/30, FOB shipping point, $9,600, including $600 freight costs paid by Mara's. Oct. 14th: Sold merchandise on credit to Rose Milito, terms n/30, FOB shipping point, $2,400. Cost of merchandise was $1,440. Oct. 14th: Returned damaged merchandise received from Novak Co. on October 8, for $600. Oct. 17th: Received check from Ken Smith for his purchase of October 2. Oct. 19th: Sold merchandise for cash, $1,800. Cost of merchandise was $1,080. Oct. 20th: Paid Mara's Co. for purchase of October 10. Oct. 21th: Paid Novak Co. the balance from the transactions of Oct. 8 and Oct. 14. Oct. 24th: Accepted a return of merchandise from Rose Milito, which was put back into inventory, $200. Cost of merchandise was $120Step by Step Solution
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