Autumn Company began the month of October with inventory of $29,000. The following inventory transactions occurred...

 

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Autumn Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $43,000 on October 12. Terms of the purchase were 3/10, 1/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $640 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $20,100 was sold on account for $30,800. d. It was determined that inventory on hand at the end of October cost $51,250. Problem 8-1 (Algo) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Autumn Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $43,000 on October 12. Terms of the purchase were 3/10, 1/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $640 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $20,100 was sold on account for $30,800. d. It was determined that inventory on hand at the end of October cost $51,250. Problem 8-1 (Algo) Part 1 Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Answer rating: 100% (QA)

1 Journal entries for the above transactions are as follows a Purchase of inventory on account Da... View the full answer