Two different companies, Quick Cleaners and JunkTrader entered into the following inventory transactions during December. Both companies use a perpetual inventory system. December 3 - Quick Cleaners sold inventory on account to JunkTrader for $550,000, terms 3/10, n/30. This inventory originally cost Quick Cleaners $330,000. . December 8 - JunkTrader returned inventory to Quick Cleaners for a credit of $20,000. Quick Cleaners returned this inventory to inventory at its original cost of $12,000. . December 23 - JunkTrader paid Quick Cleaners for the amount owed. Required: Prepare the journal entries to record these transactions on the books of Quick Cleaners using the gross method.

Two different companies, Quick Cleaners and JunkTrader entered into the following inventory transactions during December. Both companies use a perpetual inventory system. December 3 - Quick Cleaners sold inventory on account to JunkTrader for $550,000, terms 3/10, n/30. This inventory originally cost Quick Cleaners $330,000. . December 8 - JunkTrader returned inventory to Quick Cleaners for a credit of $20,000. Quick Cleaners returned this inventory to inventory at its original cost of $12,000. . December 23 - JunkTrader paid Quick Cleaners for the amount owed. Required: Prepare the journal entries to record these transactions on the books of Quick Cleaners using the gross method.

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Description: Two different companies, Quick Cleaners and JunkTrader entered into thefollowing inventory transactions during December. Both companies use aperpetual inventory system.• December 3 - Quick Cleaners sold inventory on account to JunkTraderfor $550,000

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 3AP

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