Journalize these transactions, first on the books of Arnold Drug Stores and second on the books of
Question:
Journalize these transactions, first on the books of Arnold Drug Stores and second on the books of Wentworth Paraphrenias. Assume both companies use the periodic inventory system.
The following transactions occurred between Wentworth Pharmaceuticals and Arnold Drug Store during June of the current year.
Jun. 6 – Arnold purchased $29,400 of merchandise from Wentworth on credit terms 1/10, n/30, FOB shipping points. Separately, Arnold paid freight in of $300. Wentworth invoiced Arnold for $29,400.
Jun. 10 – Arnold returned $3,600 of the merchandise purchased on June 6. Wentworth issued a credit memo for this account.
June. 15 – Arnold paid $12,000 of the invoice amount owed to Wentworth for June 6 purchase. This payment included none of the freight charge.
June. 27 – Arnold paid the remaining amount owed to Wentworth for the June 6 purchase.
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura