Jun. 20 Purchased inventory of $5,100 on account from Sanders Diamonds, a jewelry importer. Terms were 2/15, n/45, FOB shipping point. 20 Paid freight charges, $400. Jul. 4 Returned $600 of inventory to Sanders. 14 Paid Sanders Diamonds, less return. Purchased inventory of $3,500 on account from Southboro Diamonds, a jewelry importer. Terms were 2/10, n/EOM, FOB destination. 16 Received a $300 allowance from Southboro Diamonds for damaged but usable goods. 18 24 Paid Southboro Diamonds, less allowance and discount.
Jun. 20 Purchased inventory of $5,100 on account from Sanders Diamonds, a jewelry importer. Terms were 2/15, n/45, FOB shipping point. 20 Paid freight charges, $400. Jul. 4 Returned $600 of inventory to Sanders. 14 Paid Sanders Diamonds, less return. Purchased inventory of $3,500 on account from Southboro Diamonds, a jewelry importer. Terms were 2/10, n/EOM, FOB destination. 16 Received a $300 allowance from Southboro Diamonds for damaged but usable goods. 18 24 Paid Southboro Diamonds, less allowance and discount.
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 4P
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Question
Assume the perpetual inventory; system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise.
Journalizing purchase transactions
Howie Jewelers had the following purchase transactions. Journalize all necessary trans—actions. Explanations are not required.
Transcribed Image Text:Jun. 20 Purchased inventory of $5,100 on account from Sanders Diamonds, a
jewelry importer. Terms were 2/15, n/45, FOB shipping point.
20
Paid freight charges, $400.
Jul. 4
Returned $600 of inventory to Sanders.
14
Paid Sanders Diamonds, less return.
Purchased inventory of $3,500 on account from Southboro Diamonds, a
jewelry importer. Terms were 2/10, n/EOM, FOB destination.
16
Received a $300 allowance from Southboro Diamonds for damaged but
usable goods.
18
24
Paid Southboro Diamonds, less allowance and discount.
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