Scooby Doo Company had the following transactions related to thpurchase of merchandise inventory during August: 3...

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Scooby Doo Company had the following transactions related to thpurchase of merchandise inventory during August: 3 Purchased merchandise costing $9,000 on account from Velma Company, terms 2/15, n/30, FOB Destination. Velma Company paid $400 of shipping charges to Worldwide Shipping Co. 4 Based on a competitor's lower price, Velma Company agreed to reduce the purchase cost of the merchandise purchased by Scooby Doo on August 3 by $700. 12 Purchased merchandise costing $6,200 on account from Shaggy Company, terms 1/10, n/30, FOB Shipping Point. Scooby Doo paid $200 of shipping charges to Worldwide Shipping Co. 14 Returned merchandise costing $800 to Shaggy Company for credit. 18 Paid the amount due to Velma Company. 22 Paid Shaggy Company the amount due. Scooby Doo Company maintains an accounts payable subsidiary ledger. REQUIRED: A. Give the general journal entries required to record the August transactions, assuming that Scooby Doo uses the perpetual inventory method. B. What is the cost of goods purchased for August? C. What would change if Scooby Doo did not pay Velma Company the amount due until August 31? Module 5 Checkpoint #1 GENERAL JOURNAL DR Date Account Titles CR Scooby Doo Company had the following transactions related to thpurchase of merchandise inventory during August: 3 Purchased merchandise costing $9,000 on account from Velma Company, terms 2/15, n/30, FOB Destination. Velma Company paid $400 of shipping charges to Worldwide Shipping Co. 4 Based on a competitor's lower price, Velma Company agreed to reduce the purchase cost of the merchandise purchased by Scooby Doo on August 3 by $700. 12 Purchased merchandise costing $6,200 on account from Shaggy Company, terms 1/10, n/30, FOB Shipping Point. Scooby Doo paid $200 of shipping charges to Worldwide Shipping Co. 14 Returned merchandise costing $800 to Shaggy Company for credit. 18 Paid the amount due to Velma Company. 22 Paid Shaggy Company the amount due. Scooby Doo Company maintains an accounts payable subsidiary ledger. REQUIRED: A. Give the general journal entries required to record the August transactions, assuming that Scooby Doo uses the perpetual inventory method. B. What is the cost of goods purchased for August? C. What would change if Scooby Doo did not pay Velma Company the amount due until August 31? Module 5 Checkpoint #1 GENERAL JOURNAL DR Date Account Titles CR

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Under FOB shipping point the buyer of goods is responsible for paying the shipping costs whereas und... View the full answer