Problem 5-2A

Problem 5-2A The following transactions occurred between Chao Pharmaceuticals and Hall Drug Store Acco during February of the current year. Both companies use the perpetual inventory system.sale Feb. 6 Hall purchased $60,000 of merchandise from Chao on credit terms of 1/10, 2 petu n/30, FOB shipping point. Separately, Hall paid a $1,000 bill for freight-in. Feb Chao invoiced Hall for $60,000 (these goods cost Chao $36,000). 10 Hall returned $5,000 of the merchandise purchased on February 6. Chao 15 Hall paid $24,000 of the invoice amount owed to Chao for the February 6 27 Hall paid the remaining amount owed to Chao for the February 6 purchase. issued a credit memo for this amount and returned the goods to inventory (cost, $3,000). purchase. Chao allows its customers to take the cash discount on partial payments Required Journalize these transactions, first on the books of Hall Drug Store and second on the books of Chao Pharmaceuticals. systelll en Chao Pharmaceuticals and Hall Drug Store oth companies use the perpetual inventory system of merchandise from Chao on credit terms of 1/10. . ale of in petual in int. Separately, Hall paid a $1,000 bill for freight-in. Feb 27 C or $60,000 (these goods cost Chao $36,000) of the merchandise purchased on February 6. Chao o for this amount and returned the goods to inventory f the invoice amount owed to Chao for the February 6 ows its customers to take the cash discount on partial ining amount owed to Chao for the February 6 purchase. sactions, first on the books of Hall Drug Store and second ticals uses the ay of the current year supplies for cash, Mays the perpetual inventory system and engaged in he ntory on credit terms o credit terms of 3/10, net eom, $76,000.ot the hnd on May 7. It was i Me