Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
These are the events occurred in a service company during the year xxx1, using perpetual inventory and net method for the accounting transactions. Prepare the
These are the events occurred in a service company during the year xxx1, using perpetual inventory and net method for the accounting transactions. Prepare the Journal Entry for each transaction (identify the general ledger accounts and the dollars amount for each event).
- February 7-sold merchandise on account for $800, and the cost of this merchandise sold was $560.
| Account Name | Increase or Decrease | Amount |
|
|
|
|
|
|
|
|
| Explanation: |
| |
- February 10-returned $500 on defective merchandise (list price) of the purchases dated February 3.
| Account Name | Increase or Decrease | Amount |
|
|
|
|
|
|
|
|
| Explanation: |
| |
- February 11-paid the amount due of the purchased realized.
| Account Name | Increase or Decrease | Amount |
|
|
|
|
|
|
|
|
| Explanation:
|
|
|
- February 12-accepted defective products returned that were sold by $150 on February 7, and the cost of these products returned is $110.
| Account Name | Increase or Decrease | Amount |
|
|
|
|
|
|
|
|
| Explanation:
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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