Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Fedora Company had a beginning inventory balance of $25,750 and engaged in the following transactions during the month of June: i (Click the icon

image text in transcribedimage text in transcribed

The Fedora Company had a beginning inventory balance of $25,750 and engaged in the following transactions during the month of June: i (Click the icon to view the transactions.) Enter each of the transactions for the Fedora Company into the accounting equation, assuming it uses a perpetual inventory system. Enter each of the following transactions into the accounting equation. Some of the account names will be abbreviated. Begin by entering the transaction of June 2. Purchased $4,000 of merchandise inventory on account from Plumes Incorporated with terms 2/10, n/30 and FOB destination. Freight costs associated with this purchase were $225. Then, enter each transaction in the order it occurred. (Round to the nearest dollar. Use parenthes or a minus sign when entering component decreases. Use only the necessary input lines.) Shareholders' Equity Contributed Capital Assets Liabilities Retained Earnings + Account Account Account Account + + + + + + + + June 2 Purchased $4,000 of merchandise inventory on account from Plumes Inc. with terms 2/10, n/30 and FOB destination. Freight costs associated with this purchase were $225 Returned $400 of damaged merchandise to Plumes Inc. Sold $7,000 of merchandise to Fancy Caps on account, terms 1/15, n/30 and FOB shipping point. Freight costs were $125. The cost of the inventory sold was $3,500. Paid the amount owed to Plumes Inc June 4 June 6 June 9 June 10 Granted Fancy Caps an allowance on the June 6 sale of $300 for minor damage found on several pieces of merchandise. Received total payment owed from Fancy Caps June 22 June 24 Paid sales salaries of $1,850 June 25 Paid the rent on the showroom of $1,200

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_2

Step: 3

blur-text-image_3

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

Health Care Marketing Audit A Complete Guide

Authors: Gerardus Blokdyk

2020 Edition

0655947469, 978-0655947462

More Books

Students also viewed these Accounting questions