Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $11,700. Emma Co. prepaid the $820 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co. make to record the payment for the merchandise if Isabella Co. pays within the discount period? Oa. Accounts Payable-Emma Co., debit $11,700; Freight In, debit $820; Cash, credit $12,520 Ob. Accounts Payable-Emma Co., debit $11,700; Cash, credit $11,700 Oc. Accounts Payable-Emma Co., debit $12,520; Merchandise Inventory, debit $117; Cash, credit $12,637 Od. Accounts Payable-Emma Co., debit $12,403; Cash, credit $12,403
Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $11,700. Emma Co. prepaid the $820 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co. make to record the payment for the merchandise if Isabella Co. pays within the discount period? Oa. Accounts Payable-Emma Co., debit $11,700; Freight In, debit $820; Cash, credit $12,520 Ob. Accounts Payable-Emma Co., debit $11,700; Cash, credit $11,700 Oc. Accounts Payable-Emma Co., debit $12,520; Merchandise Inventory, debit $117; Cash, credit $12,637 Od. Accounts Payable-Emma Co., debit $12,403; Cash, credit $12,403
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...
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