Self- Assessment Problem I. Information related to Steffens Co.is presented below. 1. On April 5, purchased merchandise from Bryant Company for $25,000 terms 2/10, net/30, FOB shipping point. 2. On April 6 paid freight costs of $900 on merchandise purchased from Bryant. 3. On April 7, purchased equipment on account for $26,000. 4. On April 8, returned damaged merchandise to Bryant Company and was granted a $4,000 credit for returned merchandise. 5. On April 15 paid the amount due to Bryant Company in full. Instructions (a) Prepare the journal entries to record these transactions on the books of Steffens Co. under a perpetual inventory system. (b) Assume that Steffens Co. paid the balance due to Bryant Company on May 4 instead of April 15.Prepare the iournal entry to record this payment
Self- Assessment Problem I. Information related to Steffens Co.is presented below. 1. On April 5, purchased merchandise from Bryant Company for $25,000 terms 2/10, net/30, FOB shipping point. 2. On April 6 paid freight costs of $900 on merchandise purchased from Bryant. 3. On April 7, purchased equipment on account for $26,000. 4. On April 8, returned damaged merchandise to Bryant Company and was granted a $4,000 credit for returned merchandise. 5. On April 15 paid the amount due to Bryant Company in full. Instructions (a) Prepare the journal entries to record these transactions on the books of Steffens Co. under a perpetual inventory system. (b) Assume that Steffens Co. paid the balance due to Bryant Company on May 4 instead of April 15.Prepare the iournal entry to record this payment
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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