Question

The Fedora Company had a beginning inventory balance of $25,750 and engaged in the following transactions during the month of June:
June 2 Purchased $4,000 of merchandise inventory on account from Plumes, Inc., with terms 2/10, n/30 and FOB destination. Freight costs associated with this purchase were $225.
June 4 Returned $400 of damaged merchandise to Plumes, Inc.
June 6 Sold $7,000 of merchandise to Fancy Caps on account, terms 1/15, n/30 and FOB shipping point. Freight costs were $125. The cost of the inventory sold was $3,500.
June 9 Paid the amount owed to Plumes, Inc.
June 10 Granted Fancy Caps an allowance on the June 6 sale of $300 for minor damage found on several pieces of merchandise
June 22 Received total payment owed from Fancy Caps
June 24 Paid sales salaries of $1,850
June 25 Paid the rent on the showroom of $1,200

Enter each of the transactions for the Fedora Company into the accounting equation, assuming it uses a perpetual inventory system.



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  • CreatedSeptember 01, 2014
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