Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following are selected transactions for Kim, Inc., during the month of June: une 21 Sold and shipped on account to Lowery Company, $4,000 ($2,000
The following are selected transactions for Kim, Inc., during the month of June: une 21 Sold and shipped on account to Lowery Company, $4,000 ($2,000 cost) of merchandise, with terms of 2/10, n/30. 28 Lowery Company returned defective merchandise billed at $400 on June 21 ($200 cost.) 30 Received from Lowery Company a check for full settlement of the June 21 transaction. Required repare the necessary journal entries for (a) Kim, Inc., and (b) Lowery Company. Both companies use the perpetual inventory Seller's Journal Entries Buyer's Journal Entries KIM, INC. GENERAL JOURNAL Date Description Debit Credit une 21 Accounts Receivable 4,000 Sales Revenue 4,000 Sold merchandise to Lowery Company terms 2/10, n/30. 21 Cost of Goods Sold 2,000 * Inventory 2,000 Cost of merchandise sold to Lowery Company. 28 Sales Returns and Allowances # 400 O V Accounts Receivable 400 v Merchandise returned by Lowery Company. 28 Inventory W 200 0 v Cost of Goods Sold 200 * Cost of merchandise returned by Lowery Company. 30 Cash 3,920 x 0 v Sales Discounts 80 X 0 * Accounts Receivable 4,400 x Received amount due from Lowery Company.Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following are selected transactions for Kim, Inc., during the month of June: June 21 Sold and shipped on account to Lowery Company, $4,000 ($2,000 cost) of merchandise, with terms of 2/10, n/30. 28 Lowery Company returned defective merchandise billed at $400 on June 21 ($200 cost.) 30 Received from Lowery Company a check for full settlement of the June 21 transaction. Required Prepare the necessary journal entries for (a) Kim, Inc., and (b) Lowery Company. Both companies use the perpetual inventor Seller's Journal Entries Buyer's Journal Entries LOWERY COMPANY GENERAL JOURNAL Date Description Debit Credit June 21 Inventory # 2,000 * Accounts payable 2,000 x Purchased merchandise from Kim, Inc.; terms 2/10, n/30. 28 Sales Returns and Allowances 0 * 400 * Accounts Receivable 400 x 0 * Returned merchandise to Kim, Inc. 30 Cost of Goods Sold X 200 * Accounts payable X 3,920 x 0 * Cash 3,920 * Paid amount due to Kim Inc
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started