On October 5, Flint Corporation buys merchandise for resale on account from Pina Colada Corporation. The...

 
 

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On October 5, Flint Corporation buys merchandise for resale on account from Pina Colada Corporation. The selling price of the goods is $4,740, and the cost to Pina Colada Company is $2.980. On October 8, Flint returns defective goods with a selling price of $700 and a cost of $270. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $270, if not more. Both companies use a periodic inventory system. (a) Your answer is correct. Record the transactions on the books of Flint Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Oct. 5 8 Purchases Accounts Payable Accounts Payable Purchase Returns and Allowances Debit 4740 700 Credit 4740 700 (b) * Your answer is incorrect. Record the transactions on the books of Pina Colada Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Oct. 5 8 Sales Returns and Allowances Accounts Receivable Inventory Cost of Goods Sold Debit 700 270 Credit 700 270 On October 5, Flint Corporation buys merchandise for resale on account from Pina Colada Corporation. The selling price of the goods is $4,740, and the cost to Pina Colada Company is $2.980. On October 8, Flint returns defective goods with a selling price of $700 and a cost of $270. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $270, if not more. Both companies use a periodic inventory system. (a) Your answer is correct. Record the transactions on the books of Flint Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Oct. 5 8 Purchases Accounts Payable Accounts Payable Purchase Returns and Allowances Debit 4740 700 Credit 4740 700 (b) * Your answer is incorrect. Record the transactions on the books of Pina Colada Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Oct. 5 8 Sales Returns and Allowances Accounts Receivable Inventory Cost of Goods Sold Debit 700 270 Credit 700 270

Answer rating: 100% (QA)

Perpetual Inventory System It is an inventory esti... View the full answer