XYZ Co uses the peridic inventory system. During June, the following transactions occurred for XYZ compagny : 1- Feb 1 Purchased 250 units of goods 30$ each one from Sami Co, terms 2/10, n/30. 2- Feb 3 Received credit of 1500 $ for the return of 50 units purchased on Feb 1 that were defective. 3. Feb 5, Paid freight on Feb 1 purchases for 300 $ cash FOB shipping point. 4- Feb 6, XYZ. sold goods 120 units at selling price 50 $ per unit to Sigma Co. on account 2/10 n, 30. FOB destination. 5- Feb 7 , XYZ Co. paid cash 150 $ freight expenses on Feb 6 sales. (FOB destination) 6- Feb 10, XYZ paid the net due to Sami Co. 7- Feb 20, received cash from Sigma Co. 8- Feb 28, XYZ Purchases additional 300 units from Ali totalling 12,000 $, terms 3/20, n/60). Instructions: 1. Journalize the June transactions for XYZ company using the periodic inventory system
XYZ Co uses the peridic inventory system. During June, the following transactions occurred for XYZ compagny :
1- Feb 1 Purchased 250 units of goods 30$ each one from Sami Co, terms 2/10, n/30.
2- Feb 3 Received credit of 1500 $ for the return of 50 units purchased on Feb 1 that were defective.
3. Feb 5, Paid freight on Feb 1 purchases for 300 $ cash FOB shipping point.
4- Feb 6, XYZ. sold goods 120 units at selling price 50 $ per unit to Sigma Co. on account 2/10 n, 30. FOB destination.
5- Feb 7 , XYZ Co. paid cash 150 $ freight expenses on Feb 6 sales. (FOB destination)
6- Feb 10, XYZ paid the net due to Sami Co.
7- Feb 20, received cash from Sigma Co.
8- Feb 28, XYZ Purchases additional 300 units from Ali totalling 12,000 $, terms 3/20, n/60).
Instructions:
1. Journalize the June transactions for XYZ company using the periodic inventory system.
2. Explain the importance of physical inventory operation at the year end.
Note (Answer must be in table provided)
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General Journal |
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Date |
Account Title & Explanation |
Debit |
Credit |
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Feb 1 |
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Feb 3 |
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Feb 5 |
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Feb 6 |
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Feb 7 |
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Feb 10 |
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Feb 20 |
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Feb 28 |
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