Assume a perpetual inventory system. Journalize the following purchase related transactions: a. M Co. purchased P4,000 worth of merchandise on account, terms 2/10, n/30, FOB shipping point. Prepaid transportation charges of P200 were added to the invoice. b. Returned P500 of merchandise purchased in (a). c. Paid on account for purchases in (a), less return (b) and discount.
Assume a perpetual inventory system. Journalize the following purchase related transactions: a. M Co. purchased P4,000 worth of merchandise on account, terms 2/10, n/30, FOB shipping point. Prepaid transportation charges of P200 were added to the invoice. b. Returned P500 of merchandise purchased in (a). c. Paid on account for purchases in (a), less return (b) and discount.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter14: Adjustments For A Merchandising Business
Section: Chapter Questions
Problem 9SEB: JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY SYSTEM Sunita Computer Supplies entered into the...
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Practice Problem #1: Assume a perpetual inventory system. Journalize the following purchase related transactions:
a. M Co. purchased P4,000 worth of merchandise on account, terms 2/10, n/30, FOB shipping point. Prepaid transportation charges of P200 were added to the invoice.
b. Returned P500 of merchandise purchased in (a).
c. Paid on account for purchases in (a), less return (b) and discount.
What is the Balance of your Merchandise inventory account?
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