1. On June 10, Krabby burger Shack purchased $6,000 of merchandise from Chum Bucket FOB shipping point, terms 2/10, n/30. Krabby burger Shack pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Chum Bucket for credit on June 12. On June 19, Krabby burger pays Chum Bucket in full, less the purchase discount. Both companies use a perpetual inventory system. Instructions (a) Prepare separate entries for each transaction on the books of Krabby burger Shack. (b) Prepare separate entries for each transaction for Chum Bucket.The merchandise purchased by Krabby burger Shack on June 10 had cost Bristol $3,000.

1. On June 10, Krabby burger Shack purchased $6,000 of merchandise from Chum Bucket FOB shipping point, terms 2/10, n/30. Krabby burger Shack pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Chum Bucket for credit on June 12. On June 19, Krabby burger pays Chum Bucket in full, less the purchase discount. Both companies use a perpetual inventory system. Instructions (a) Prepare separate entries for each transaction on the books of Krabby burger Shack. (b) Prepare separate entries for each transaction for Chum Bucket.The merchandise purchased by Krabby burger Shack on June 10 had cost Bristol $3,000.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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