On May 11, Sharjah Co. accepts delivery of $40,000 of merchandise it purchases for resale from Dammam Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Dammam $30,000. When the goods are delivered, Sharjah pays $345 to Express Shipping for delivery charges on the merchandise. On May 12, Sharjah returns $1,400 of goods to Dammam, who receives them one day later and restores them to inventory. The returned goods had cost Dammam $800. On May 20, Sharjah mails a check to Dammam Corporation for the amount owed. Dammam receives it the following day. (Both Sharjah and Dammam use a perpetual inventory system.) Required: - Prepare journal entries that Dammam Corporation records for these transactions.
On May 11, Sharjah Co. accepts delivery of $40,000 of merchandise it purchases for resale from Dammam Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Dammam $30,000. When the goods are delivered, Sharjah pays $345 to Express Shipping for delivery charges on the merchandise. On May 12, Sharjah returns $1,400 of goods to Dammam, who receives them one day later and restores them to inventory. The returned goods had cost Dammam $800. On May 20, Sharjah mails a check to Dammam Corporation for the amount owed. Dammam receives it the following day. (Both Sharjah and Dammam use a perpetual inventory system.) Required: - Prepare journal entries that Dammam Corporation records for these transactions.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter9: Sales And Purchases
Section: Chapter Questions
Problem 8E: Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to...
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On May 11, Sharjah Co. accepts delivery of $40,000 of merchandise it purchases for resale from Dammam Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Dammam $30,000. When the goods are delivered, Sharjah pays $345 to Express Shipping for delivery charges on the merchandise. On May 12, Sharjah returns $1,400 of goods to Dammam, who receives them one day later and restores them to inventory. The returned goods had cost Dammam $800. On May 20, Sharjah mails a check to Dammam Corporation for the amount owed. Dammam receives it the following day. (Both Sharjah and Dammam use a perpetual inventory system.)
Required: -
- Prepare
journal entries that Dammam Corporation records for these transactions.
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