Santa's Castle sells all types of Christmas decorations. On November $1,20$X$1,$ Santa's Castle purchased $500$ ornaments from a supplier for $$900.$ On November $2,$ it spent $$50$ transporting the ornaments to its store and an additional $$15$ for setting up the ornaments around the store for shoppers to see. On November $15,20$X$1,$ Santa's received an invoice from the supplier with the terms $1/10$ n$/30$ and paid the invoice on November $22,20$X$1.$ Santa's Castle uses a perpetual inventory system and the gross method of recording purchase discounts.

Required:

A$.$ Prepare the journal entry to record the purchase of inventory.

B$.$ Prepare the journal entry to record the transportation costs.

C$.$ Prepare the journal entry to record the set$-$up costs.

D$.$ Prepare the journal entry to record the payment of the invoice from the supplier.

Answer rating: 100% (QA)

A Journal entry to record the purchase of inventory Date November 1 20X1 Inventory Ornaments 900 Acc... View the full answer