Question
The Bixby Co. had the following transactions involving the purchase of merchandise. Prepare the necessary general journal entries. Any applicable freight costs are prepaid by
The Bixby Co. had the following transactions involving the purchase of merchandise. Prepare the necessary general journal entries. Any applicable freight costs are prepaid by the seller. The perpetual inventory method is in use.
June 16Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 10, n/30. Transportation terms F.O.B destination.
June 16Purchased merchandise having a price of $9,000 from the Ajax Supply House on account with credit terms 2/10, n/30. Transportation terms F.O.B shipping point. The freight costs were $175.
June 17Received the goods from Shelby.
June 17Received the goods from Ajax.
June 20Returned for credit merchandise with an invoice price of $800 to Ajax.
June 25Paid Shelby the amount owed.
June 28Paid Ajax the amount owed.
June 30Returned for cash, merchandise with an invoice price of $400 to Shelby.
Prepare the necessary general journal entry for June 16, Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 2/10, n/30. Transportation terms F.O.B destination.
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Prepare the necessary general journal entry for June 17, Received the goods from Shelby.
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PRINCIPLES OF ACCOUNTING 1 51
Prepare the necessary general journal entry for June 25.
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Prepare the necessary general journal entry for June 28.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
