Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory...
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Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory system and gross method. Purchased merchandise from Havel Co. for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated May 2 May 2 Sold merchandise to Rath Co. for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $5,600 Paid $250 cash for freight charges on the purchase of May 2 4 6 25 30 Preparing journal entries for merchandising activities P1 P2 9 10 Sold merchandise that had cost $2,000 for $2.500 cash 12 Purchased merchandise from Duke Co. for $3,650 under credit terms of 2/15, n/60, FOB destination, invoice dated May 10 Returned $650 of merchandise purchased on May 10 from Duke Co. and debited its account payable for that amount Received the balance due from Rath Co. for the invoice dated May 4, net of the discount 14 Check May 14, Dr. Cash, 110,780 17 Paid the balance due to Havel Co. within the discount period. 20 Sold merchandise that cost $1.450 to Tamer Co. for $2,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated May 20 May 17, Cr. Cast, $9,900 22 #9 Gave a price reduction (allowance) of $300 to Tamer Co. for merchandise sold on May 20 and credited Tamer's accounts receivable for that amount Paid Duke Co, the balance due, net of the discount. Received the balance due from Tamer Co. for the invoice dated May 20, net of discount and allowance May 30, Dr. Cash $2,450 31 Sold merchandise that cost $3,600 to Rath Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31. page 205 Prepare journal entries to record the following merchandising transactions of IKEA, which uses the perpetual inventory system and gross method. Purchased merchandise from Havel Co. for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated May 2 May 2 Sold merchandise to Rath Co. for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $5,600 Paid $250 cash for freight charges on the purchase of May 2 4 6 25 30 Preparing journal entries for merchandising activities P1 P2 9 10 Sold merchandise that had cost $2,000 for $2.500 cash 12 Purchased merchandise from Duke Co. for $3,650 under credit terms of 2/15, n/60, FOB destination, invoice dated May 10 Returned $650 of merchandise purchased on May 10 from Duke Co. and debited its account payable for that amount Received the balance due from Rath Co. for the invoice dated May 4, net of the discount 14 Check May 14, Dr. Cash, 110,780 17 Paid the balance due to Havel Co. within the discount period. 20 Sold merchandise that cost $1.450 to Tamer Co. for $2,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated May 20 May 17, Cr. Cast, $9,900 22 #9 Gave a price reduction (allowance) of $300 to Tamer Co. for merchandise sold on May 20 and credited Tamer's accounts receivable for that amount Paid Duke Co, the balance due, net of the discount. Received the balance due from Tamer Co. for the invoice dated May 20, net of discount and allowance May 30, Dr. Cash $2,450 31 Sold merchandise that cost $3,600 to Rath Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31. page 205
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Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild
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