AP-19A LO 8 9 10 11 Crystal Crockery, owned by Crystal Kleer, has provided you with...
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AP-19A LO 8 9 10 11 Crystal Crockery, owned by Crystal Kleer, has provided you with the following information about the transactions occurring in March 2018. Mar 2 Crystal Crockery received a shipment of gift mugs for resale from Cup Makers. The amount on the invoice is $7,000 and the stated terms are 2/15, n/45. Crystal Crockery paid $400 cash for shipping charges. The manager of Crystal Crockery checked the shipped cups and found that goods worth $700 were defective. The defective goods were returned to the supplier. Mar 13 Crystal Crockery paid the remaining invoice balance and, in doing so, took advantage of the early payment discount. Mar 20 Crystal Crockery sold the goods costing $6,174 to EatFresh Supermarket for $9,500. Mar 22 Mar 2 Mar 5 EatFresh Supermarket found 10% worth of items to be defective and returned these to Crystal Crockery. The goods cannot be resold. Mar 28 The invoice showed terms 2/10, n/60, EatFresh Supermarket paid the remaining invoice balance after taking advantage of the early settlement discount The opening inventory balance was $500 and the closing inventory balance was $847. Required Assume Crystal Crockery uses the periodic inventory system. a) Prepare the journal entries to record the purchase and sales transactions. Date Account Title and Explanation Debit Credit Chapter Prepare the journal entries to record the closing entries for the month using the income summary method. Assume that the accounting period for Crystal Crockery is one month. Date Account Title and Explanation d Prepare the cost of goods sold section of the income statement. Prepare the net purchases section of the income statement Debit Credit AP-19A LO 8 9 10 11 Crystal Crockery, owned by Crystal Kleer, has provided you with the following information about the transactions occurring in March 2018. Mar 2 Crystal Crockery received a shipment of gift mugs for resale from Cup Makers. The amount on the invoice is $7,000 and the stated terms are 2/15, n/45. Crystal Crockery paid $400 cash for shipping charges. The manager of Crystal Crockery checked the shipped cups and found that goods worth $700 were defective. The defective goods were returned to the supplier. Mar 13 Crystal Crockery paid the remaining invoice balance and, in doing so, took advantage of the early payment discount. Mar 20 Crystal Crockery sold the goods costing $6,174 to EatFresh Supermarket for $9,500. Mar 22 Mar 2 Mar 5 EatFresh Supermarket found 10% worth of items to be defective and returned these to Crystal Crockery. The goods cannot be resold. Mar 28 The invoice showed terms 2/10, n/60, EatFresh Supermarket paid the remaining invoice balance after taking advantage of the early settlement discount The opening inventory balance was $500 and the closing inventory balance was $847. Required Assume Crystal Crockery uses the periodic inventory system. a) Prepare the journal entries to record the purchase and sales transactions. Date Account Title and Explanation Debit Credit Chapter Prepare the journal entries to record the closing entries for the month using the income summary method. Assume that the accounting period for Crystal Crockery is one month. Date Account Title and Explanation d Prepare the cost of goods sold section of the income statement. Prepare the net purchases section of the income statement Debit Credit
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Answer rating: 100% (QA)
a Date Particulars Debit Credit Mar02 Purchases 7000 Accounts Payable 7000 Freightin 400 Cash 400 ... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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