1. Journalize the following transactions for Kaye Inc. Kaye Inc. uses perpetual inventory system and had the following transactions during June, 2018: All sales terms are 2/10, n/30. June 2 Sold merchandise with a cost of $3,300 to Palwalla's Co. for $5,200. Freight costs were $500 FOB destination. June 8 Palwalla's Co. returned one-third of the items they bought. June 10 Palwalla's Co. paid the balance that was owed to Kaye Inc. June 20 Kaye Inc. purchased merchandise on credit with a cost of $12,000 from Yusuf Company with freight charges of $500 (FOB shipping point). The merchandise cost Yusuf Company $7,200. June 21 Kaye Inc. returned merchandise that was defective. The sales price of the returned items was $820. June 26 Kaye Inc. paid the entire balance owing.

1. Journalize the following transactions for Kaye Inc. Kaye Inc. uses perpetual inventory system and had the following transactions during June, 2018: All sales terms are 2/10, n/30. June 2 Sold merchandise with a cost of $3,300 to Palwalla's Co. for $5,200. Freight costs were $500 FOB destination. June 8 Palwalla's Co. returned one-third of the items they bought. June 10 Palwalla's Co. paid the balance that was owed to Kaye Inc. June 20 Kaye Inc. purchased merchandise on credit with a cost of $12,000 from Yusuf Company with freight charges of $500 (FOB shipping point). The merchandise cost Yusuf Company $7,200. June 21 Kaye Inc. returned merchandise that was defective. The sales price of the returned items was $820. June 26 Kaye Inc. paid the entire balance owing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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