1. On April 5, purchased merchandise on account from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $900 on merchandise purchased from Wilkes. 3. On April 7, purchased equipment on account for $26,000. 4. On April 8, returned damaged merchandise to Wilkes Company and was granted a $3,000 credit for returned merchandise. 5. On April 15, paid the amount due to Wilkes Company in full. Prepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system. (Cred.
1. On April 5, purchased merchandise on account from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $900 on merchandise purchased from Wilkes. 3. On April 7, purchased equipment on account for $26,000. 4. On April 8, returned damaged merchandise to Wilkes Company and was granted a $3,000 credit for returned merchandise. 5. On April 15, paid the amount due to Wilkes Company in full. Prepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system. (Cred.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fill out the missing boxes of both charts.
Transcribed Image Text:Exercise 5-02 a-b (Video)
Information related to Kerber Co. is presented below.
1. On April 5, purchased merchandise on account from Wilkes Company for $23,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Wilkes.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Wilkes Company and was granted a $3,000 credit for returned merchandise.
5. On April 15, paid the amount due to Wilkes Company in full.
Prepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system. (Credit
No.
Date
Account Titles and Explanation
Debit
Credit
1.
2.
4.
5.
>
>
3.
Transcribed Image Text:Assume that Kerber Co. paid the balance due to Wilkes Company on May 4 instead of April 15. Prepare the journal entry to record this payment. (
presented in the problem.)
Debit
Credit
Date Account Titles and Explanation
May 4
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