At the beginning of Year 2, the Redd Company had the following balances in its accounts:...
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At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash $23,300 4,500 3,000 19,000 11,800 Inventory Land Common stock Retained earnings During Year 2, the company experienced the following events: 1. Purchased inventory that cost $12,200 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $900 were paid in cash. 2. Returned $950 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the casdiscount period. 4, Sold inventory that had cost $9,000 for $17,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,700 and was sold to the customer for $2,100 cash. The customer was paid $2,100 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $790 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5.50O. 9. Recognized accrued interest income of $750. 10. Took a physical count indicating that $3,600 of inventory was on hand at the end of the accounting perlod (Hint Determine the current balance in the inventory account before calculating the amount of the inventory write down.) b. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used. (If no entry required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 8. 15 ..... Record entry inventory purchased on account from Ross company terms 2/10, n/30. Note: Enter debits before credits. Event General Journal Debit Credit 1a Merchandise inventory 12,200 Accounts payable 12,200 Record entry Clear entry Vlew general journal At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash $23,300 4,500 3,000 19,000 11,800 Inventory Land Common stock Retained earnings During Year 2, the company experienced the following events: 1. Purchased inventory that cost $12,200 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $900 were paid in cash. 2. Returned $950 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the casdiscount period. 4, Sold inventory that had cost $9,000 for $17,000 on account, under terms 2/10, n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $1,700 and was sold to the customer for $2,100 cash. The customer was paid $2,100 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $790 were paid in cash. 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $5.50O. 9. Recognized accrued interest income of $750. 10. Took a physical count indicating that $3,600 of inventory was on hand at the end of the accounting perlod (Hint Determine the current balance in the inventory account before calculating the amount of the inventory write down.) b. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used. (If no entry required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 8. 15 ..... Record entry inventory purchased on account from Ross company terms 2/10, n/30. Note: Enter debits before credits. Event General Journal Debit Credit 1a Merchandise inventory 12,200 Accounts payable 12,200 Record entry Clear entry Vlew general journal
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General Journal for transactions occurred in Year 2 Event Description Debit Credit 1 Inventory 13100 Cash 900 Accounts payable 12200 To record invento... View the full answer
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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