Question

Information related to Gilberto Co. is presented below:
1. On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Allman.
3. On April 7, purchased equipment on account for $26,000
4. On April 8, returned damaged merchandise to Allman Company and was granted a $4,000 allowance for returned merchandise
5. On April 15, paid the amount due to Allman Company in full.

Instructions
(a) Prepare the journal entries to record these transactions on the books of Gilberto Co, under a perpetual inventory system.
(b) Assume that Gilberto Co. paid the balance due to Allman Company on May 4 instead of April 15.
Prepare the journal entry to record this payment.



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  • CreatedAugust 26, 2013
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