Give the entries to record each of the following transactions (1) under the periodic inventory system LO
Question:
Give the entries to record each of the following transactions (1) under the periodic inventory system LO 4 Recording Purchases: Periodic and Perpetual Inventory Systems and (2) under the perpetual inventory system:
a. Purchased goods on credit, terms \(\mathrm{n} / 30\), FOB shipping point, 7,500 .
b. Paid freight on the shipment in transaction
a, 405 .
c. Purchased goods on credit, terms \(n / 30\), FOB destination, 4,200 .
d. Purchased goods on credit, terms \(\mathrm{n} / 30\), FOB shipping point, 7,800 , which includes freight paid by the supplier of 600 .
e. Returned part of the goods purchased in transaction
c, 1,500.
f. Paid the amount owed on the purchase in transaction a.
g. Paid the amount owed on the purchase in transaction d.
h. Paid the amount owed on the purchase in transaction c less the return in transaction \(e\).
Step by Step Answer:
Financial Accounting A Global Approach
ISBN: 9780395839867
1st Edition
Authors: Sidney J. Gray, Belverd E. Needles