On October 10, Robin Company purchased goods worth $30,000 from TJ Company, with transportation terms of FOB
Question:
On October 10, Robin Company purchased goods worth $30,000 from TJ Company, with transportation terms of FOB Destination and credit terms of 3/10, n/45. The goods sold cost $18,800 to TJ Company. The freight cost of $750 was paid on October 11. Upon the arrival of the merchandise, Robin Company received some faulty goods that did not meet the standards of the company, thus TJ Company agreed to take back the goods worth $1,200 for credit, on October 15. The goods returned had a cost of $350. On October 19, Robin Company makes a settlement of the money due to TJ Company. Assume that both companies use a perpetual inventory system. Required:
a. Journalize each transaction that is to be included in the books of Robin Company.
b. Journalize each transaction that is to be included in the books of TJ Company. c. Assume that the transportation terms stated FOB Shipping Point. Prepare the appropriate journal to record the transportation cost only.
Expert Answer:
In the books of Robin Company b In the books of TJ Company Date Account Titles and Explanations Debi... View the full answer
