Question
Question 3 Central Paint Distributors uses a perpetual inventory system. The company had the following transactions in March. Mar. 16 Sold $13,900 of merchandise to
Question 3
Central Paint Distributors uses a perpetual inventory system. The company had the following transactions in March.
Mar. 16
Sold $13,900 of merchandise to Fresh Look Paint Stores, terms 2/10, n/30, FOB destination. The merchandise had cost Central Paint Distributors $9,300.
17
Paid freight costs of $140 for the March 16 sale.
18
Gave Fresh Look Paint Stores an allowance of $760 for the March 16 sale. There was some minor damage to the goods.
25
Collected the balance due from Fresh Paint Stores.
For each transaction, make a journal entry to record the transaction. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
(To record sales)
(To record cost)
Mar. 25
For each transaction, indicate the amount by which the transaction increased or decreased total assets, total liabilities, and owner's equity. Indicate No Effect if the transaction neither increased nor decreased any of these items.
DateAssetsLiabilitiesOwner's EquityMar. 16
Mar. 16
Mar. 17
Mar. 18
Mar. 25
Mar. 25
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