Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory system and gross method. Purchased merchandise from Havel Co. for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated May 2 May 2 Sold merchandise to Rath Co. for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $5,600 Paid $250 cash for freight charges on the purchase of May 2 4 6 25 30 Preparing journal entries for merchandising activities P1 P2 9 10 Sold merchandise that had cost $2,000 for $2.500 cash 12 Purchased merchandise from Duke Co. for $3,650 under credit terms of 2/15, n/60, FOB destination, invoice dated May 10 Returned $650 of merchandise purchased on May 10 from Duke Co. and debited its account payable for that amount Received the balance due from Rath Co. for the invoice dated May 4, net of the discount 14 Check May 14, Dr. Cash, 110,780 17 Paid the balance due to Havel Co. within the discount period. 20 Sold merchandise that cost $1.450 to Tamer Co. for $2,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated May 20 May 17, Cr. Cast, $9,900 22 #9 Gave a price reduction (allowance) of $300 to Tamer Co. for merchandise sold on May 20 and credited Tamer's accounts receivable for that amount Paid Duke Co, the balance due, net of the discount. Received the balance due from Tamer Co. for the invoice dated May 20, net of discount and allowance May 30, Dr. Cash $2,450 31 Sold merchandise that cost $3,600 to Rath Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31. page 205 Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory system and gross method. Purchased merchandise from Havel Co. for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated May 2 May 2 Sold merchandise to Rath Co. for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $5,600 Paid $250 cash for freight charges on the purchase of May 2 4 6 25 30 Preparing journal entries for merchandising activities P1 P2 9 10 Sold merchandise that had cost $2,000 for $2.500 cash 12 Purchased merchandise from Duke Co. for $3,650 under credit terms of 2/15, n/60, FOB destination, invoice dated May 10 Returned $650 of merchandise purchased on May 10 from Duke Co. and debited its account payable for that amount Received the balance due from Rath Co. for the invoice dated May 4, net of the discount 14 Check May 14, Dr. Cash, 110,780 17 Paid the balance due to Havel Co. within the discount period. 20 Sold merchandise that cost $1.450 to Tamer Co. for $2,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated May 20 May 17, Cr. Cast, $9,900 22 #9 Gave a price reduction (allowance) of $300 to Tamer Co. for merchandise sold on May 20 and credited Tamer's accounts receivable for that amount Paid Duke Co, the balance due, net of the discount. Received the balance due from Tamer Co. for the invoice dated May 20, net of discount and allowance May 30, Dr. Cash $2,450 31 Sold merchandise that cost $3,600 to Rath Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31. page 205
Expert Answer:
Answer rating: 100% (QA)
Journal entries to record the merchandising transac... View the full answer
Related Book For
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild
Posted Date:
Students also viewed these accounting questions
-
5. Carbon dioxide and oxygen filled in two large chambers in whch the species concentrations are maintained at fixed values and connected by a circular tube whose length and diameter are 1m and 50 mm...
-
A straight wire of mass 40 g and length 5.0 cm is suspended from two identical springs that, in turn, form a closed circuit (see the figure). The springs stretch a distance of 0.5 cm under the weight...
-
In the current year, C Inc. had the following expenses: $5,000 legal fee to register a mortgage on its office building, $6,000 for landscaping the land around the office building, and $700 interest...
-
Given the following points: 2,4,10,12,3,20,30,11,25. Assume k = 3, and that we randomly pick the initial means 1=2, 2=4 and 3=6. Show the clusters obtained using K-means algorithm after one...
-
On November 21, 2010, a fire at Hodge Companys warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $10,000. The...
-
A 19.2-g quantity of dry ice (solid carbon dioxide) is allowed to sublime (evaporate) in an apparatus like the one shown in Figure 6.5. Calculate the expansion work done against a constant external...
-
Which interest rate on a bond determines the amount of the semiannual interest payment? a. Market rate b. Effective rate c. Stated rate d. None of the above
-
Budget Tax Service, Inc prepares tax returns for small businesses. The cost of preparing 800 tax returns in the prior year was: Direct labor ............ $320,000 Variable overhead ..............
-
What does the MTV brand stand for? Describe the current sources of MTV's brand equity. How have they changed over time? How have they remainedconstant? 2. What i s the role of music within MTV? How...
-
Presented below is the unadjusted trial balance of Webster Demolition Company as of June 30, 2023, the end of its fiscal year. The owner invested $17,500 cash in the company during the year. Required...
-
The Board of Directors of Pearson Corporation is considered a restricted stock award grant to its senior management. In considering the grant, the Board asks whether an increase in the following...
-
In each of the following, name the term defined or answer the question. Answers are listed at the bottom. 1. A Six Sigma process that is running at the center of its control limits would expect this...
-
In each of the following cases, who is the principal and who is the agent, and explain why there might be asymmetry of information. a. A suspicious wife hires a private detective to report on the...
-
Do you think that technology is the primary source of sociocultural change? Do values play any role in sociocultural change?
-
The Irish backstop provided the guarantee that whatever the outcome of the post-withdrawal negotiations, a hard border would not be reintroduced to the island of Ireland. This is widely agreed to be...
-
What are the anatomical and temporal differences between H. habilis and H. rudolfensis?
-
In completing a Schedule E, 1040 form for an individual that owns a business as a partnership, How do I calculate his non-passive income from his K-1?
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
Gomez issues $240,000 of 6%, 15-year bonds dated January 1, 2016, that pay interest semiannually on June 30 and December 31. They are issued at $198,494, and their market rate is 8% at the issue...
-
The following is selected financial information for Edison Energy Company for the year ended December 31, 2016: revenues, $55,000; expenses, $40,000; net income, $15,000. Required Prepare the 2016...
-
On June 30, 2016, Sharper Corporation's common stock is priced at $62 per share before any stock dividend or split, and the stockholders' equity section of its balance sheet appears as follows....
-
The armature of a variable-speed electric motor, of mass \(200 \mathrm{~kg}\), has an unbalance due to manufacturing errors. The motor is mounted on an isolator having a stiffness of \(10 \mathrm{kN}...
-
It is found that an exhaust fan, of mass \(80 \mathrm{~kg}\) and operating speed \(1000 \mathrm{rpm}\), produces a repeating force of \(10,000 \mathrm{~N}\) on its rigid base. If the maximum force...
-
A dishwashing machine weighing \(75 \mathrm{~kg}\) operates at \(300 \mathrm{rpm}\). Find the minimum static deflection of an isolator that provides 60 percent isolation. Assume that the damping in...
Study smarter with the SolutionInn App