Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each supplier
Question:
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.
The first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet version expedites your solution by including a journal pick list of the following accounts:
Cash
Purchases
Accounts Payable
Purchases Discounts
Freight-in
Step by Step Answer:
