Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, 2 purchased $60,000 inventory, terms 2/10, n/30 FOB shipping point Zorzi paid freight costs of $1,200. On July 3, Zorzi returned damaged goods and received a credit of $6.000. On July 10 Zorzi paid for the goods. Prepare the Journal Entries for the Return of Damaged Goods O Cash $6.000 Purchases Returns & Allowance $6.000 O Accounts Payable S6.000 Purchases Returns & Allowance S6 000 O Cash $6.000 Inventory O Purchases Returns & Allowance $6.000 $6.000 Cash $6.000
Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, 2 purchased $60,000 inventory, terms 2/10, n/30 FOB shipping point Zorzi paid freight costs of $1,200. On July 3, Zorzi returned damaged goods and received a credit of $6.000. On July 10 Zorzi paid for the goods. Prepare the Journal Entries for the Return of Damaged Goods O Cash $6.000 Purchases Returns & Allowance $6.000 O Accounts Payable S6.000 Purchases Returns & Allowance S6 000 O Cash $6.000 Inventory O Purchases Returns & Allowance $6.000 $6.000 Cash $6.000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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