Answered: The business transaction of Tata Motors…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...

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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 double entry for Goods returned to Heaven motors RO 10,000 will be a. Debit : Accounts payable RO 10,000 Credit : Purchase return RO 10,000 b. Debit : Accounts payable RO 10,000 Credit Sales return RO 10,000 c. Debit : Purchase RO 10,000 Credit : Accounts payable RO 10,000 d. Debit : Accounts receivable RO 10,000 Credit : Sales RO 10,000

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