Question: Question 2 (80 points: 8 points each) Prepare the necessary journal entries to record the following transactions, assuming KIKO Company uses a perpetual inventory system.
Question 2 (80 points: 8 points each)
Prepare the necessary journal entries to record the following transactions, assuming KIKO Company uses a perpetual inventory system.
1. January 1st, purchased merchandise from TAKOS Co. for $220,000, terms 2/10, n/30.
2. January 1st, Paid $900 freight on the shipment.
3. January 2, Returned defective goods costing $50,000 to TAKOS for credit.
4. January 6, Paid for the merchandise purchased from TAKOS.
5. January 7, Sold $60,000 of merchandise to GOGO Co., terms 1/10, n/30. The merchandise cost $30,000.
6. January 7, Paid $ 100 freight cost on the shipment to GOGO Co.
7. January 8, GOGO. Co returned $30,000 of merchandise. The merchandise returned cost $15,000.
8. January 10, Received the full balance from GOGO.
Required:
- Prepare the journal entries in KIKO books.
- Prepare the journal entries for: Transaction: January 6 and January 10, assuming both payments were done on January 25.
1. Prepare the journal entries in KIKO books.
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