Question
The following transactions occurred in November and December. Both companies use a perpetual inventory system. Nov 14: Matt Company purchased merchandise from Rose Company for
The following transactions occurred in November and December. Both companies use a perpetual inventory system. Nov 14: Matt Company purchased merchandise from Rose Company for $26,000, terms 2/10, n/30, with freight FOB shipping point. Rose Company paid $18,700 for the merchandise. Nov 16: The buyer paid freight costs of $1,200 cash. Nov 20: Matt Company returned damaged merchandise to Rose Company and was given a purchase allowance of $5,400. Rose determined the returned merchandise was in good working order and returned them to inventory. The merchandise had cost Rose $3,500. Dec 14: Matt Company paid the amount due to Rose Company in full. Required: a) Prepare all required journal entries related to the above transactions from Matt Company's perspective. Journal entry descriptions are not required. If no journal entry is required, type in "No entry required" next to the date and put N/A in the debit and credit columns, [NOTE: use full and proper account names: DO NOT USE ABBREVIATIONS. Also, do NOT use commas or dollar signs when entering amounts and enter all amounts as dollars only (no decimal places). For example: for "$5,000" type "5000" (without the ").] Date Account Names Nov 14 Nov 16 Nov 20 Dec 14 Debit Credit b) Prepare all required journal entries related to the above transactions from Rose Company's perspective. Journal entry descriptions are not required. If no journal entry is required, type in "No entry required" next to the date and put N/A in the debit and credit columns. b) Prepare all required journal entries related to the above transactions from Rose Company's perspective. Journal entry descriptions are not required. If no journal entry is required, type in "No entry required" next to the date and put N/A in the debit and credit columns. [NOTE: use full and proper account names: DO NOT USE ABBREVIATIONS. Also, do NOT use commas or dollar signs when entering amounts and enter all amounts as dollars only (no decimal places). For example: for "$5,000" type "5000" (without the ").] Date Nov 14 Nov 16 Nov 201 Dec 14 Account Names Debit Credit
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