Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each...

 

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Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery records all purchases "gross" and uses a periodic inventory system. Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journal entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000 and freight is $100. Scenario Cash Discount 1 2/10, n/30 Freight Terms F.O.B. Shipping point/freight prepaid Discount Condition taken 2 2/10, n/30 F.O.B. Shipping point/freight prepaid missed 3 2/10, n/30 F.O.B. Destination/freight prepaid taken 4 2/10, n/30 F.O.B. Destination/freight prepaid missed 5 2/10, n/30 F.O.B. Shipping point/freight collect taken 2/10, n/30 F.O.B. Shipping point/freight collect missed The first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet ver- sion expedites your solution by including a journal pick list of the following accounts: Cash Purchases Accounts Payable Purchase Discounts Freight-in Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery records all purchases "gross" and uses a periodic inventory system. Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journal entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000 and freight is $100. Scenario Cash Discount 1 2/10, n/30 Freight Terms F.O.B. Shipping point/freight prepaid Discount Condition taken 2 2/10, n/30 F.O.B. Shipping point/freight prepaid missed 3 2/10, n/30 F.O.B. Destination/freight prepaid taken 4 2/10, n/30 F.O.B. Destination/freight prepaid missed 5 2/10, n/30 F.O.B. Shipping point/freight collect taken 2/10, n/30 F.O.B. Shipping point/freight collect missed The first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet ver- sion expedites your solution by including a journal pick list of the following accounts: Cash Purchases Accounts Payable Purchase Discounts Freight-in