Question: Spring Co bought merchandise from All Co with terms 2 10
Spring Co. bought merchandise from All Co. with terms 2/10, n/30. Joanne Ring, the bookkeeper, forgot to pay the bill within the first 10 days. She went to Mel Ryan, the head accountant, who told her to backdate the check so that it looked like the bill was paid within the discount period. Joanne told Mel that she thought they could get away with it. Should Joanne and Mel backdate the check to take advantage of the discount? You make the call. Write down your specific recommendations to Joanne.
Answer to relevant QuestionsComplete the followingtable:Draw a seesaw similar to the one shown in Figure and show a sale of $1,000 that cost the store $450. Be sure to label all theaccounts.Record the following transaction in a transaction analysis chart for the buyer: Bought merchandise for $8,600 on account. Shipping terms were F.O.B. destination. The cost of shipping was $490.Journalize, record, and post when appropriate the following transactions into the general journal for Kaden’s Clothing. All purchases discounts are 3/10, n/30. Assume the periodic inventory system. If using working papers, ...The following transactions occurred for Rachel’s Natural Food. If using working papers, be sure to put in beginning balances.201XAug. 8 Purchased $800 of merchandise on account from Airon Co., invoice no. 400, dated August ...
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