Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October. Prepare entries to record these transactions assuming that Piere Imports records invoices (a) at gross amounts and (b) at net amounts. Oct. 2 Purchased merchandise at a $3,000 price ($2,940 net), invoice dated October 2, terms 2∕10, n∕30. 10 Returned $500 ($490 net) of merchandise purchased on October 2 and debited its account payable for that amount. 17 Purchased merchandise at a $5,400 price ($5,292 net), invoice dated October 17, terms 2∕10, n∕30. 27 Paid for the merchandise purchased on October 17, less the discount. 31 Paid for the merchandise purchased on October 2.
Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October. Prepare entries to record these transactions assuming that Piere Imports records invoices (a) at gross amounts and (b) at net amounts. Oct. 2 Purchased merchandise at a $3,000 price ($2,940 net), invoice dated October 2, terms 2∕10, n∕30. 10 Returned $500 ($490 net) of merchandise purchased on October 2 and debited its account payable for that amount. 17 Purchased merchandise at a $5,400 price ($5,292 net), invoice dated October 17, terms 2∕10, n∕30. 27 Paid for the merchandise purchased on October 17, less the discount. 31 Paid for the merchandise purchased on October 2.
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter14: Adjustments And The Work Sheet For A Merchandising Business
Section: Chapter Questions
Problem 1SEB: ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Sandra Owens owns a...
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Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following
transactions during the month of October. Prepare entries to record these transactions assuming that Piere
Imports records invoices (a) at gross amounts and (b) at net amounts.
Oct. 2 Purchased merchandise at a $3,000 price ($2,940 net), invoice dated October 2, terms 2∕10, n∕30.
10 Returned $500 ($490 net) of merchandise purchased on October 2 and debited its account payable
for that amount.
17 Purchased merchandise at a $5,400 price ($5,292 net), invoice dated October 17, terms 2∕10, n∕30.
27 Paid for the merchandise purchased on October 17, less the discount.
31 Paid for the merchandise purchased on October 2.
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