QUESTION 2 During the year ended October 31, 2017, the following transactions occurred: a. Purchased $550,000 of merchandise; terms 2/10, n/30. b. Sold merchandise for cash; $815,000 (cost of sales $509,000). c. Paid $10,500 in freight costs regarding the purchase in (a) above. d. $20,000 of the merchandise purchased in (a) above were returned. e. Paid for the purchase in (a) above within the discount period. f. Sold $25,000 of merchandise on account; terms 2/10, n/30 (cost of sales $17,000). g. $3,000 of the $25,000 sale in (f) was returned and restored to inventory (cost of sales $2,040). h. Paid salaries of $50,000. i. Collected within the discount period the balance owing regarding the sale in (g). Required: Journalize the transactions for the year 2017 (no specific dates required).
QUESTION 2 During the year ended October 31, 2017, the following transactions occurred: a. Purchased $550,000 of merchandise; terms 2/10, n/30. b. Sold merchandise for cash; $815,000 (cost of sales $509,000). c. Paid $10,500 in freight costs regarding the purchase in (a) above. d. $20,000 of the merchandise purchased in (a) above were returned. e. Paid for the purchase in (a) above within the discount period. f. Sold $25,000 of merchandise on account; terms 2/10, n/30 (cost of sales $17,000). g. $3,000 of the $25,000 sale in (f) was returned and restored to inventory (cost of sales $2,040). h. Paid salaries of $50,000. i. Collected within the discount period the balance owing regarding the sale in (g). Required: Journalize the transactions for the year 2017 (no specific dates required).
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.1P: Purchase-related transactions The following selected transactions were completed by Epic Co. during...
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QUESTION 2
During the year ended October 31, 2017, the following transactions occurred:
a. Purchased $550,000 of merchandise; terms 2/10, n/30.
b. Sold merchandise for cash; $815,000 (cost of sales $509,000).
c. Paid $10,500 in freight costs regarding the purchase in (a) above.
d. $20,000 of the merchandise purchased in (a) above were returned.
e. Paid for the purchase in (a) above within the discount period.
f. Sold $25,000 of merchandise on account; terms 2/10, n/30 (cost of sales $17,000).
g. $3,000 of the $25,000 sale in (f) was returned and restored to inventory (cost of sales $2,040).
h. Paid salaries of $50,000.
i. Collected within the discount period the balance owing regarding the sale in (g).
Required: Journalize the transactions for the year 2017 (no specific dates required).
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