Question: Assume the following transactions for Clark s Appliances Inc took place

Assume the following transactions for Clark’s Appliances, Inc., took place during May. Clark’s Appliances uses a perpetual inventory system. Enter each of the transactions into the accounting equation.
May 2 Purchased refrigerators on account at a total cost of $500,000; terms 1/10, n/30
May 9 Paid freight of $800 on refrigerators purchased from GE
May 16 Returned refrigerators to GE because they were damaged; received a credit of $5,000 from GE
May 22 Sold refrigerators costing $100,000 for $180,000 to Pizzeria Number 1 on account, terms n/30
May 24 Gave a credit of $3,000 to Pizzeria Number 1 for the return of a refrigerator not ordered. Clark’s cost was $1,200.

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  • CreatedSeptember 01, 2014
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