Junie B. Corporation (JBC) is a merchandising business that deals in buying and selling high-end jackets....
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Junie B. Corporation (JBC) is a merchandising business that deals in buying and selling high-end jackets. JBC uses a perpetual inventory system to record its transactions. The company estimates a return rate of 6% based on past experience. Listed below are the company's inventory transactions during the month of April. REQUIRED: Journalize the transactions for each item listed below. April 3-Purchased merchandise from Ivanhoe Industries for $24,500 on account with credit terms of 3/10, n/30 FOB Shipping point. April 4-Freight charges of $950 were paid by the appropriate party on the April 3 transaction. April 7 - Sold merchandise to Gentry Co. for $18,200 on account with credit terms of 3/10, n/30, FOB Shipping point. The merchandise originally cost $11,500. (Hint: Two sets of entries have been provided. Please pay attention to the debits and credits.) April 8- The appropriate party paid the freight charges of $325 on the April 7 transaction. April 10- Gentry Co. returned merchandise from the April 7 sale and received a credit for $9,600. The merchandise sent to Gentry was not what was ordered. The cost of the goods returned to JBC was $4,200 and it was returned to inventory. April 11- Paid Ivanhoe Industries the amount owing. April 26- Received payment from Gentry Co. for the total amount owing. Junie B. Corporation (JBC) is a merchandising business that deals in buying and selling high-end jackets. JBC uses a perpetual inventory system to record its transactions. The company estimates a return rate of 6% based on past experience. Listed below are the company's inventory transactions during the month of April. REQUIRED: Journalize the transactions for each item listed below. April 3-Purchased merchandise from Ivanhoe Industries for $24,500 on account with credit terms of 3/10, n/30 FOB Shipping point. April 4-Freight charges of $950 were paid by the appropriate party on the April 3 transaction. April 7 - Sold merchandise to Gentry Co. for $18,200 on account with credit terms of 3/10, n/30, FOB Shipping point. The merchandise originally cost $11,500. (Hint: Two sets of entries have been provided. Please pay attention to the debits and credits.) April 8- The appropriate party paid the freight charges of $325 on the April 7 transaction. April 10- Gentry Co. returned merchandise from the April 7 sale and received a credit for $9,600. The merchandise sent to Gentry was not what was ordered. The cost of the goods returned to JBC was $4,200 and it was returned to inventory. April 11- Paid Ivanhoe Industries the amount owing. April 26- Received payment from Gentry Co. for the total amount owing.
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Journal entries Scenario Purchased Merchandise from Ivanhoe Industries Date April 3 Debit Merchandis... View the full answer
Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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