During January the following purchase transactions occurred: 8-Jan Purchased $5,900 of
Question:
During January the following purchase transactions occurred:
8-Jan Purchased $5,900 of merchandise from The Chocolate Shop.
Terms 2/15, n/45, FOB shipping point. The Candy Store prepaid $300 in shipping and the amount was added it to their invoice.
10-Jan Purchased $350 of supplies on account from The Office Barn.
Terms 2/10, n/30, FOB destination.
17-Jan A return was recorded for $1400 of the merchandise purchased on January 8 and the customer received credit.
19-Jan Paid for the supplies purchased on January 10.
22-Jan Paid the Chocolate Shop the amount due from the January 8 purchase in full.
During January the following sales transactions occurred:
14-Jan Sold $950 (cost $500) of merchandise (inventory) on account to Maple Fair.
Terms 3/15, n/45, FOB destination.
15-Jan Paid $75 freight charges to deliver goods to Maple Fair.
18-Jan Sold $650 (cost $350) of merchandise to cash customers.
24-Jan Maple Fair returned $175 (cost $100) of merchandise from the January 14 sale.
28-Jan Received payment in full from Maple Fair for the January 14 sale.
Record this adjusting entry.
31-Jan The Candy Store's inventory account shows a balance of $27,500, but the physical counts shows only $27,350 of inventory exists.
Record the adjusting entry.
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak