Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Presented below are selected transactions for Whispering Winds Company during September and October of the current year. Whispering Winds uses a perpetual inventory system. Sept.

image text in transcribed
image text in transcribed
Presented below are selected transactions for Whispering Winds Company during September and October of the current year. Whispering Winds uses a perpetual inventory system. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $51,000, FOB destination, terms 1/15, n/30. 2 The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. 5 Returned for credit $2,800 of damaged goods purchased from Hillary Company on September 1. 15 Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $96,400, terms 2/10,n/30, FOB destination 16 The correct company paid $2,100 of freight charges on the September 15 sale of merchandise. 17 Issued Irvine Company a credit of $5,600 for returned goods. These goods had cost Whispering Winds Company $2,800 and were returned to inventory. 25 Received the balance owing from Irvine Company for the September 15 sale 30 Paid Hillary Company the balance owing for the September 1 purchase. Oct. 1 Purchased merchandise on account from Kimmel Company at a cost of $55,000, terms 2/10, 1/30, FOB shipping point 2 The correct company paid freight costs of $1,100 on the October 1 purchase. 3 Obtained a purchase allowance of $2,100 from Kimmel Company to compensate for some minor damage to goods purchased on October 1. 10 Paid Kimmel Company the amount owing on the October 1 purchase. 11 Sold all of the merchandise purchased from Kimmel Company to Kieso Company for $106,000, terms 2/10, 1/30, FOB shipping point 12 The correct company paid $800 freight costs on the October 11 sale. 17 Issued Kieso Company a sales allowance of $2,400 because some of the goods did not meet Kieso's exact specifications. 31 Received a cheque from Kieso Company for the balance owing on the October 11 sale, Aci urnal entries in the order presented in the problem.) INT W n I e

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

Students also viewed these Accounting questions

Question

e. What difficulties did they encounter?

Answered: 1 week ago