Alpha company is a trading company that purchases and sales fruits and vegetables. During the year 2020, the company shows the following transactions and events:The company assumes the freight charges to its customers. The accountant debit (freight in expenses) and credit (merchandise inventory).One customer returned fruits to Alpha that were damaged. The accountant of the company debit (purchase returns) and credit (accounts payable).The cost of goods sold is determined after each sale as follow: beginning inventory – purchases + ending inventory.Required:For each case, identify the anomaly and propose the correct accounting treatment/answer:

Name: Alpha company is a trading company that purchases and sales fruits and
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Alpha company is a trading company that purchases and sales fruits and vegetables. During the year 2020, the company shows the following transactions and events:The company assumes the freight charges to its customers. The accountant debit (freight

When the manufacturer supplies goods to a customer and is responsible for the freight charges, such…

Answered: Alpha company is a trading company that…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 11MC: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What...

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Alpha company is a trading company that purchases and sales fruits and vegetables. During the year 2020, the company shows the following transactions and events:

The company assumes the freight charges to its customers. The accountant debit (freight in expenses) and credit (merchandise inventory).
One customer returned fruits to Alpha that were damaged. The accountant of the company debit (purchase returns) and credit (accounts payable).
The cost of goods sold is determined after each sale as follow: beginning inventory – purchases + ending inventory.

Required:

For each case, identify the anomaly and propose the correct accounting treatment/answer:

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