Question

Duthie Company had the following transactions during May 2010:
3 Purchased direct materials from Holt Company, $ 19,600; terms 1 10, n 30, FOB destination.
10 Purchased direct materials from Lamb Company with a price of $ 18,200; terms n 30, FOB shipping point.
12 Paid Holt Company for the purchase of May 3.
15 Returned $ 1,000 list price of direct materials purchased from Lamb Company because the items were damaged.
16 Purchased direct materials from Ellen Company for $ 18,800; terms 2 10, n 60, FOB destination.
31 Paid Ellen Company the amount due on the purchase of May 16.
Required
A. Prepare the journal entry for each of the preceding events assuming Duthie uses the perpetual inventory system and the gross price method to record purchases.
B. Prepare the journal entry for each of these events assuming Duthie uses the perpetual inventory system and the net price method to record purchases.


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  • CreatedMarch 25, 2015
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