QUESTION 4 Pippen Company uses a perpetual system, while Thomas Co. uses a periodic inventory system. Dec. 3 4 Pippen Company sold merchandise to Thomas Co. for $32,000, terms 2/10. n/30. FOB shipping point. This merchandise cost Pippen Company $18,000. The correct company paid freight charges of $650. Thomas Co. returned unwanted merchandise to Pippen. The returned merchandise had a sales price of $1,800 and a cost of $990. It was restored to inventory. Pippen Company received the balance due from Thomas Co. 8 13 Select the correct journal entries to record these transactions on the books of Thomas Co. Purchase of Merchandise (Dec 3): O Dr. Merchandise Inventory 18,000 18,000 Cr. A/P 32,000 O Dr. Purchases Cr. A/P 32,000 18,000 O Dr. Purchases Cr. A/P 18,000 32,000 O Dr. Merchandise Inventory Cr. A/P 32,000 QUESTION 6 Pippen Company uses a perpetual system, while Thomas Co. uses a periodic inventory system. Dec. 3 4 Pippen Company sold merchandise to Thomas Co. for $32,000, terms 2/10, n/30. FOB shipping point. This merchandise cost Pippen Company $18.000. The correct company paid freight charges of $650. Thomas Co. returned unwanted merchandise to Pippen. The returned merchandise had a sales price of $1,800 and a cost of $990. It was restored to inventory. Pippen Company received the balance due from Thomas Co. 8 13 Select the correct journal entries to record these transactions on the books of Thomas Co. Return of Merchandise (Dec 8): O Dr. A/P 1800 Cr. Merchandise Inventory 1800 Dr. A/P 1800 Cr. Purchase return and allowances Dr. Cost of Goods Sold 1,800 Cr. Merchandise Inventory 1,800 O Dr. Cost of Goods Sold 990 Cr. Merchandise Inventory 1800 990 QUESTION 7 Pippen Company uses a perpetual system, while Thomas Co. uses a periodic inventory system. Dec. 3 4 Pippen Company sold merchandise to Thomas Co. for $32,000, terms 2/10, n/30. FOB shipping point. This merchandise cost Pippen Company $18,000. The correct company paid freight charges of $650. Thomas Co. returned unwanted merchandise to Pippen. The returned merchandise had a sales price of $1,800 and a cost of $990. It was restored to inventory. Pippen Company received the balance due from Thomas Co. 8 13 Dr. A/P Select the correct journal entries to record these transactions on the books of Thomas Co. Final payment (Dec 13): Dr. Sales discount 504 Dr. Cash 29596 Cr. A/R 30200 30200 Cr. Purchase discount 302 Cr. Cash 29898 Dr.A/P 30200 Cr. merchandise inventory 302 Cr. Cash 29898 Dr. A/ P30200 Cr. Purchase discount 604 Cr. Cash 29596 Dr. AP 30200 Cr. Cash 30200