Answered: The business transaction of Tata Motors…

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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The business transaction of Tata Motors as follows: The business uses periodic inventory system. 5th May 2019 : Purchased RO30,000 of merchandise inventory from Sky motors : terms 2/15, n 45, (Invoice no. 201) 11th May 2019: Purchased RO20,000 of merchandise inventory from Moon Motors terms 5/20, n 45, (Invoice no. 651) 20th May 2019 : Purchased RO40,000 of merchandise inventory from Heaven Motors terms 5/20, n 45, (Invoice no. 107) 28th May 2019: Full payment was made to Moon Motors 29th May 2019: Goods returned to Heaven Motors RO10,000 30th May 2019 : Purchase merchandise from Start Motors and paid cash immediately. RO 5,000 The Closing balance of Heaven Motors under Accounts Payable (Purchase ledger) on 31st May 2019 will be : a. Credit RO 30,000 b. Credit RO 40,000 c. Debit RO 30,000 d. Credit RO 10,000

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