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See both parts QUESTION 1 (15 marks) On May 11, Gradner Company sold $30,000 of merchandise to Dionne Company, the merchandise had cost Gradner Company
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QUESTION 1 (15 marks) On May 11, Gradner Company sold $30,000 of merchandise to Dionne Company, the merchandise had cost Gradner Company $22,000. Dionne Company accepted delivery on May 12, with terms 2/10, n/30, FOB Gradner Company's factory. When the goods were delivered, Express Shipping was paid $300 for the delivery charges on the merchandise. The next day, Dionne Company reported to Gradner that a few items were slightly dented, for which Gradner agreed to provide a credit of $1,800. On May 20, Dionne Company mailed a cheque to Gradner Company for the amount owing on that date. It was received by Gradner on May 22. Required: a) Prepare the journal entries for Dionne Company (the purchaser) who uses the PERPETUAL SYSTEM. Ignore all taxes. Omit headings and explanations. (9 marks) ACCT 1110-001 FINAL FALL 2021 2 QUESTION 1 (continued) b) Prepare the journal entries in the books of Gradner Company (the seller) for all transactions except for the receipt of the Dionne cheque on May 22. Gradner uses the PERPETUAL SYSTEM. (6 marks)Step by Step Solution
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