Sep. 6Birdy Birdhouses purchases 58 birdhouses at $42 each with cash.Sep. 8Birdy Birdhouses purchases 80 birdhouses at $40 each on credit. Terms of the purchase are 2/10, n/30, invoice date September 8.Sep. 10Birdy discovers 15 of the birdhouses are damaged from the Sep. 6 purchase and returns them to the supplier for a full refund. Birdy also discovers that 14 of the birdhouses from the Sep. 8 purchase are painted the wrong color but keeps them since the supplier granted an allowance of $100.Sep. 18Birdy pays their account in full from the September 8 purchase, less any returns, allowances, and/or discounts.If an amount box does not require an entry, leave it blank. Assume the periodic inventory system is used. Sep. 6 PurchasesPurchases CashCashSep. 8 PurchasesPurchases Accounts PayableAccounts PayableSep. 10 Refund CashCash Purchase Returns and AllowancesPurchase Returns and AllowancesSep. 10 Allowance Accounts PayableAccounts Payable Purchase Returns and AllowancesPurchase Returns and AllowancesSep. 18 Accounts PayableAccounts Payable Purchase DiscountsPurchase Discounts

Periodic inventory method: It is an inventory valuation method in which inventory is updated at the…

Answered: Sep. 6 Birdy Birdhouses purchases 58…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sep. 6	Birdy Birdhouses purchases 58 birdhouses at $42 each with cash.
Sep. 8	Birdy Birdhouses purchases 80 birdhouses at $40 each on credit. Terms of the purchase are 2/10, n/30, invoice date September 8.
Sep. 10	Birdy discovers 15 of the birdhouses are damaged from the Sep. 6 purchase and returns them to the supplier for a full refund. Birdy also discovers that 14 of the birdhouses from the Sep. 8 purchase are painted the wrong color but keeps them since the supplier granted an allowance of $100.
Sep. 18	Birdy pays their account in full from the September 8 purchase, less any returns, allowances, and/or discounts.

If an amount box does not require an entry, leave it blank. Assume the periodic inventory system is used.

Sep. 6	Purchases	Purchases
	Cash	Cash
Sep. 8	Purchases	Purchases
	Accounts Payable	Accounts Payable
Sep. 10 Refund	Cash	Cash
	Purchase Returns and Allowances	Purchase Returns and Allowances
Sep. 10 Allowance	Accounts Payable	Accounts Payable
	Purchase Returns and Allowances	Purchase Returns and Allowances
Sep. 18	Accounts Payable	Accounts Payable
	Purchase Discounts	Purchase Discounts

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