Crane Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts.

(a) On July 1, (1) Crane purchased $60,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Crane paid freight costs of $1,094.

(b) On July 3, Crane returned damaged goods and received credit of $6,500.

(c) On July 10, Crane paid for the goods.

Prepare all necessary journal entries for Crane \\\\r\\\\n. (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No. Date Account Titles and Explanation                Debit              Credit

(a) (1) July 1   ________________________     ___________   _______________  

                        _______________________     ____________   _______________

(a) (2) _____________________________     ____________   _______________  

             ____________________________    _____________ _______________

(b) July 3 _________________________       _____________   _______________

                _________________________       ______________ ________________

(c) July 10 ________________________       _______________   ________________  

                  ________________________      ______________    ___________________         

                   ________________________     _______________ ___________________

\\\\r\\\\n

Answer rating: 100% (QA)

Answer No Date Account Title Explaination Debit Credi... View the full answer