ABC Company sells inventory to XYZ Company for a total invoice price of $200,000 on January...
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ABC Company sells inventory to XYZ Company for a total invoice price of $200,000 on January 1, 2021 on credit with terms 2/15, n/30. Both companies use a periodic inventory system. ABC Co uses the gross method to account for its sales discounts while XYZ Co uses the net method to account for purchase discounts. On January 10, 2021, XYZ paid 50% of the outstanding amount while it paid 30% on January 27, 2021. Required: Prepare all journal entries that should exist in the books of ABC (Seller) and XYZ (Buyer) companies on: 1. January 1 2. January 10 3. January 27 4. Adjusting entries needed, if any, on January 31 ABC Company sells inventory to XYZ Company for a total invoice price of $200,000 on January 1, 2021 on credit with terms 2/15, n/30. Both companies use a periodic inventory system. ABC Co uses the gross method to account for its sales discounts while XYZ Co uses the net method to account for purchase discounts. On January 10, 2021, XYZ paid 50% of the outstanding amount while it paid 30% on January 27, 2021. Required: Prepare all journal entries that should exist in the books of ABC (Seller) and XYZ (Buyer) companies on: 1. January 1 2. January 10 3. January 27 4. Adjusting entries needed, if any, on January 31
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IN THE BOOKS OF ABC COMPANY JANUARY1 JANUARY10 JANUARY27 JANUARY 31 IN THE BOOKS OF XY... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
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