12. Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inventory system. Boston engaged in the following transactions during April: April 12 - Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods were shipped f.o.b. shipping point. April 13 - Received a billing from Orange Freight Lines for $300 for the April 12 purchase. April 15 - Returned $1,000 of merchandise from the April 12 purchase. April 20 - Paid balances due from April 12 purchase. Required: Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
12. Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inventory system. Boston engaged in the following transactions during April: April 12 - Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods were shipped f.o.b. shipping point. April 13 - Received a billing from Orange Freight Lines for $300 for the April 12 purchase. April 15 - Returned $1,000 of merchandise from the April 12 purchase. April 20 - Paid balances due from April 12 purchase. Required: Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
12. Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inventory system. Boston engaged in the following transactions during April:
April 12 - Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods were shipped f.o.b. shipping point.
April 13 - Received a billing from Orange Freight Lines for $300 for the April 12 purchase.
April 15 - Returned $1,000 of merchandise from the April 12 purchase.
April 20 - Paid balances due from April 12 purchase.
Required:
Prepare journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No
Transcribed Image Text:Journal entry worksheet
3
4 5
Purchased $15,000 in merchandise subject to terms of 2/10, n/30. The goods
were shipped f.o.b. shipping point.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
April 12
Record entry
Clear entry
View general journal
Transcribed Image Text:Journal entry worksheet
1
2
3
4 5
>
Received a billing from Orange Freight Lines for $300 for the April 12
purchase.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
April 13
Record entry
Clear entry
View general journal
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