Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question #1 The following information relates to Walnut Creek Office Center, Inc. 1. On April 5 purchased merchandise from Tasco Company for $22,000, terms 2/10,
Question #1 The following information relates to Walnut Creek Office Center, Inc. 1. On April 5 purchased merchandise from Tasco Company for $22,000, terms 2/10, n/30. 2. On April 6 paid freight costs of $900 on merchandise purchased from Tasco. 3. On April 7 purchased equipment on account for $26,000 from DEC Corporation. 4. On April 8 returned some of April 5 merchandise to Tasco Company which cost $2,000. 5. On April 15 paid the remaining amount due to Tasco Company in full. 6. On April 17 sold merchandise costing $2.600 to Baylor Company for $4,200 on open account with credit terms of 3/15, net 60. 7. On April 28, Baylor Company returned $500 of their April 17 purchase. Note: the cost of the merchandise returned was $275. 8. On May 1 received payment from Baylor Company on their balance due. Instructions (a) Prepare the journal entries to record the transactions listed above on the books of Walnut Creek Office Center, Inc. Note: the company uses a perpetual inventory system. (b) 1. Assume that Walnut Creek Office Center Co. paid the balance due to Tasco Company on May 4 instead of April 15. Prepare the journal entry to record this payment. 2. Assume Baylor paid their balance due on June 1 instead of May 1. Prepare the journal Entry to record the payment received
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started