A company has the following transactions during March: March 3 Purchases inventory on account for $3,400, terms 3/10, n/30. March 5 Pays freight costs of $300 on inventory purchased on March 3. March 6 Returns inventory with a cost of $600. March 12 Pays the full amount due on March 3 purchase. March 29 Sells all inventory purchased on March 3 (less those returned on March 6) for $5,700 on account Record all transactions, assuming the company uses a perpetual inventory system. (If no entry is required for a partic transaction/event, select "No Journal Entry Required" in the first account field.)

A company has the following transactions during March: March 3 Purchases inventory on account for $3,400, terms 3/10, n/30. March 5 Pays freight costs of $300 on inventory purchased on March 3. March 6 Returns inventory with a cost of $600. March 12 Pays the full amount due on March 3 purchase. March 29 Sells all inventory purchased on March 3 (less those returned on March 6) for $5,700 on account Record all transactions, assuming the company uses a perpetual inventory system. (If no entry is required for a partic transaction/event, select "No Journal Entry Required" in the first account field.)

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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[The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $25,000. The following inventory transactions occurred during the month: The company purchased inventory on account for $37,000 on October 12. Terms of the purchase were 2/10, n/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $600 were paid in cash. On October 31, Autumn paid for the inventory purchased on October 12 During October inventory costing $19,500 was sold on account for $30,000. It was determined that inventory on hand at the end of October cost $42,360. Assuming Autumn Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold. Autumn considers purchase discounts lost as part of interest expense.
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