Accounts Receivable 109760 Sales 109760 Cost of Goods Sold 67200 Inventory 67200 Accounts Receivable-Blue Star Co. 1800
Question:
Accounts Receivable | 109760 | |
Sales | 109760 | |
Cost of Goods Sold | 67200 | |
Inventory | 67200 | |
Accounts Receivable-Blue Star Co. | 1800 | |
Cash | 1800 | |
Cash | 111560 | |
Accounts Receivable-Blue Star Co. | 111560 | |
Inventory | 1800 | |
Accounts Payable-Shore Co. | 1800 | |
Accounts Payable-Shore Co. | 111560 | |
Cash | 111560 |
Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination.FOB shipping point, 2/10, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800.
Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank.
The ones in bold and italic are incorrect.
Note who is the buyer and who is the seller. The payment is less returns and discounts, and discounts are not taken on returns. If applicable, determine whether the buyer or seller is to pay any freight.
Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. If an amount box does not require an entry, leave it blank.
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton