Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Zorzi 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.
Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Zorzi 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.
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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Transcribed Image Text:Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts On July 1, Zorzi
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 July 10 - Payment
O Accounts Payable
S60 000
Cash
$60 000
O Accounts Payable
$54,000
Cash
$54 000
O Accounts Payable
$54.000
Cash
$52 920
$1 080
Purchases Discounts
eCash
Purchases Discounts
$52 920
$1.080
Acounts Payable
$54 000
Expert Solution
Journal entry for the purchase of inventory
The following is the correct entry for the payment made for the goods on July 10.
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