John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2016: 1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. 2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier. 3. Merchandise costing $2,800 was sold for $5,200 in cash. Required: Prepare the necessary journal entries to record these transactions.
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2016: 1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. 2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier. 3. Merchandise costing $2,800 was sold for $5,200 in cash. Required: Prepare the necessary journal entries to record these transactions.
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 12RE: Carla Company uses the perpetual inventory system. The following information is available for...
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John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2016: 1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. 2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier. 3. Merchandise costing $2,800 was sold for $5,200 in cash. Required: Prepare the necessary
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