Koda Company is a wholesale company that had the following purchase and sales transactions related to...

 

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Koda Company is a wholesale company that had the following purchase and sales transactions related to its merchandise inventory during the month of May. May 1 Purchased $20,000 of merchandise on account from Webber Mfg. Co. Credit terms: 2/10, n/30. FOB shipping point 2 Received and paid the $1,000 shipping bill from Interstate Shipping for the goods purchased on March 1 6 Received a credit memo for the return of $5,000 of the goods purchased on March 1 which had arrived damaged. 10 Paid Webber Mfg. Co. the amount due. 15 Sold merchandise on account to Dover Company for $5,000. The cost of the merchandise was $3,000. (cost is 60% of the retail value) Terms: 2/10, n/30; FOB Destination 16 Paid Crosstown Shipping $100 to deliver the goods sold on March 15 17 Dover returned $1,000 of the goods they purchased on March 15. You had sent them the wrong merchandise. 24 Received the amount due from Dover Co. Requirement 1: Record the transactions assuming Koda Company uses perpetual inventory system (gross method) Requirement 2: Record the transactions assuming that Koda Company uses periodic system. (gross method) Koda Company is a wholesale company that had the following purchase and sales transactions related to its merchandise inventory during the month of May. May 1 Purchased $20,000 of merchandise on account from Webber Mfg. Co. Credit terms: 2/10, n/30. FOB shipping point 2 Received and paid the $1,000 shipping bill from Interstate Shipping for the goods purchased on March 1 6 Received a credit memo for the return of $5,000 of the goods purchased on March 1 which had arrived damaged. 10 Paid Webber Mfg. Co. the amount due. 15 Sold merchandise on account to Dover Company for $5,000. The cost of the merchandise was $3,000. (cost is 60% of the retail value) Terms: 2/10, n/30; FOB Destination 16 Paid Crosstown Shipping $100 to deliver the goods sold on March 15 17 Dover returned $1,000 of the goods they purchased on March 15. You had sent them the wrong merchandise. 24 Received the amount due from Dover Co. Requirement 1: Record the transactions assuming Koda Company uses perpetual inventory system (gross method) Requirement 2: Record the transactions assuming that Koda Company uses periodic system. (gross method)

Answer rating: 100% (QA)

Solution Perpetual inventory system 1May Merchandise invent... View the full answer