Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Presented here are selected transactions for Sheridan Inc. during August of the current year. Sheridan uses a perpetual inventory system. It estimates a return

image text in transcribed

Presented here are selected transactions for Sheridan Inc. during August of the current year. Sheridan uses a perpetual inventory system. It estimates a return rate of 10%, based on past experience. Aug. 1 Purchased supplies for $2,900 cash. 3 Purchased inventory on account from Kenliwa Corp. at a cost of $40,000, terms 2/20, n/45, FOB shipping point. 4 Freight charges of $1,400 were paid by the appropriate party on the August 3 inventory purchase. 6 Sold goods costing $13,600 to Penkwa Limited for $34,000 on account, terms n/30, FOB destination. 7 Freight charges of $400 were paid by the appropriate party on the August 6 sale of inventory. 9 Returned damaged goods costing $3,000 that were originally purchased from Kenliwa on September 3. Received a credit on account. 10 Purchased equipment on account for $49,000, terms n/45, FOB destination. 11 Freight charges of $500 were paid by the appropriate party on the August 10 purchase of equipment. 13 Purchased inventory for $3,400 cash. 15 Received the balance due from Penkwa. 22 Paid Kenliwa the balance due. 26 223 27 Sold inventory costing $12,000 to Makoons Inc. for $24,000 on account, terms n/45, FOB shipping point. Freight charges of $800 were paid by the appropriate party on the August 26 sale of inventory. 30 Makoons returned goods sold for $1,500 that cost $700. The merchandise was restored to inventory.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 August 1 Purchased Supplies Transaction Purchased supplies for 2900 cash Journal Entry Supplies 2 900 textSupplies quad quad quad quad quad quad 2900 Supplies2900 Cash 2 900 quad quad quad textCash ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting

Authors: Bernard J. Bieg, Judith A. Toland

2013 edition

113396253X, 978-1133962533

More Books

Students also viewed these Accounting questions