Question
The following are transactions for Chandler Fashions for the month of June. June 2 Purchased 3,000 items of inventory under terms 1/10, n/60 and FOB
The following are transactions for Chandler Fashions for the month of June.
June 2 Purchased 3,000 items of inventory under terms 1/10, n/60 and FOB shipping point from Flower Manufacturing. The merchandise had a cost of $12,000
June 7 Returned defective merchandise to Flower Manufacturing with invoice price of $4,000.
June 8 Paid the freight charges on the purchase from Flower Manufacturing in cash for $200.
June 9 Sold merchandise to Trendy Store on account for $10,000 with terms 2/15, n/60 FOB shipping point.
Cost of the merchandise sold was $6,000.
June 10 Paid Flower Manufacturing the balance on account.
June 12 Granted sales allowance of $1,000 to Trendy Store for defective merchandise.
June 23 Collected balance owing from Trendy Store.
June 27 Purchased 500 items of inventory, terms 1/15, n/30, FOB destination from Sparkle Co. The merchandise had a cost $2,000.
June 30 Paid for the merchandise from Sparkle Co.
Using a perpetual inventory system, prepare the journal entries to record the transactions
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
