Question
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Blossom Company sold merchandise to Thomas Co. for $41,000,
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.
| Dec. 3 | Blossom Company sold merchandise to Thomas Co. for $41,000, terms 2/10, n/30, FOB destination. This merchandise cost Blossom Company $18,000. | |
| 4 | The correct company paid freight charges of $850. | |
| 8 | Thomas Co. returned unwanted merchandise to Blossom. The returned merchandise had a sales price of $2,200 and a cost of $990. It was restored to inventory. | |
| 13 | Blossom Company received the balance due from Thomas Co. |
Assuming that Thomas Co. had a balance in Merchandise Inventory on December 1 of $6,000, determine the balance in the Merchandise Inventory account at the end of December for Thomas Co. (Post entries in the order of journal entries presented in the previous part.)
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Corporate Accounting Vol 1
Authors: Dr S. Kr. Paul, Prof. Chandrani Paul
1st Edition
164725146X, 9781647251468
