21) April 4, 2020 Smith and West, who uses the periodic inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. What would be the journal entry to record this transaction? 1. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - Cash $5,650 2. Debit - Cash $5,650 </> Credit - Purchases $5,000, HST Recoverable $650 3. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - A/P - ABC Company $5,650 4. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - A/P - Smith and Jones $5,650
21) April 4, 2020 Smith and West, who uses the periodic inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. What would be the journal entry to record this transaction? 1. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - Cash $5,650 2. Debit - Cash $5,650 </> Credit - Purchases $5,000, HST Recoverable $650 3. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - A/P - ABC Company $5,650 4. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - A/P - Smith and Jones $5,650
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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21) April 4, 2020 Smith and West, who uses the periodic inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, PI-26. Terms: 5/10 n/30. What would be the
1. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - Cash $5,650
2. Debit - Cash $5,650 </> Credit - Purchases $5,000, HST Recoverable $650
3. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - A/P - ABC Company $5,650
4. Debit - Purchases $5,000, HST Recoverable $650 </> Credit - A/P - Smith and Jones $5,650
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