Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 $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

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

Recommended Textbook for

Sustainability Accounting And Accountability

Authors: Matias Laine, Helen Tregidga, Jeffrey Unerman

3rd Edition

1032023104, 9781032023106

More Books

Students also viewed these Accounting questions

Question

What are the degrees of freedom associated with ????e.

Answered: 1 week ago