Abbott Company purchased $6,500 of merchandise inventory on account. Which of the following entrieswould be required to record this transaction?Multiple ChoiceОAccount TitleDebitCreditAccounts PayablePurchases6,5006,500Account TitleDebitCreditAccounts Payable6,500Inventory6,500ОAccount TitleDebitCreditCost of Goods Sold6,500Accounts Payable6,500оAccount TitleDebitCreditInventory6,500Accounts Payable6,500

Debit Credit Inventory Account $6,500Accounts Payable Account…

Answered: Abbott Company purchased $6,500 of…

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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Purchase-Related Transactions Journalize entries for the following related transactions of Lilly Heating & Air Company: Purchased $30,000 of merchandise from Schell Co. on account, terms 1/10, n/30. Paid the amount owed on the invoice within the discount period. Discovered that $6,000 before purchases discount of the merchandise was defective and returned items, receiving credit. Purchased $4,800 of merchandise from Schell Co. on account, terms n/30. Received a check for the balance owed from the return in (c), after deducting for the purchase in (d). a. Inventory fill in the blank 2 Accounts Payable-Schell Co. fill in the blank 4 b. Accounts Payable-Schell Co. fill in the blank 6 Cash fill in the blank 8 c. Accounts Payable-Schell Co. fill in the blank 10 Inventory fill in the blank 12 d. Inventory fill in the blank 14 Accounts Payable-Schell Co. fill in the blank 16 e. Cash fill in the blank 18 Accounts…
Assume the perpetual inventory method is used. The company purchased $12,700 of merchandise on account under terms 4/10, n/30. The company returned $2,200 of merchandise to the supplier before payment was made. The liability was paid within the discount period. All of the merchandise purchased was sold for $19,400 cash. What effect will the return of merchandise to the supplier have on the accounting equation?
Purchase-related transaction Shepherd Company purchased merchandise on account from a supplier for $9,000, terms 2/10, n/30. Shepherd Company returned $1,500 of the merchandise before payment was made and received full credit. a. If Shepherd Company pays the invoice within the discount period, what is the amount of cash required for the payment? $ b. Which accounts are decreased by Shepherd Company to record the return Inventory and Accounts Payable
Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's (a) purchase and (b) payment. If an amount box does not require an entry, leave it blank. (a) (b)
A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $900.00 to the vendor. Which of the following would be the correct journal entry to record these returns? OA. Accounts Payable 900 Merchandise Inventory 900 OB. Accounts Payable 900 Purchase Returns 900 OC. Merchandise Inventory 900 Accounts Payable 900 OD. Purchase Returns 900 Accounts Payable 900
Based on the information below: a. Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75. b. Buyer issues a $700 debit memo for defective merchandise that is not returned. c. Buyer pays within the discount period. Question Content Area Journalize the entries for the seller using a perpetual inventory system. If an amount box does not require an entry, leave Please dont give image based answers Thank you
Below are some of the account balances of FDN Company. Purchases P 1,269,500 Purchase returns and allowances 59,725 Freight in 33,800 Freight out 28,950 Beginning inventory 289,150 Cost of goods sold 1,232,825 How much is the total cost of goods available for sale?
a. Sampson Co. sold merchandise to Batson Co. on account, $35,200, terms 2/15, n/45. b. The cost of the goods sold is $26,400. c. The Batson Co. paid the invoice within the discount period. Assume that both Sampson and Batson use a perpetual inventory system and that Sampson Co. uses the net method of recording sales discounts. If no entry is required, select "No entry required" and leave the amount boxes blank. Journalize the entries that Sampson Company would record for the information above. If an amount box does not require an entry, leave it blank. a. b. C. Journalize the entries that Batson Company would record for the information above. If an amount box does not require an entry, leave it blank. a. b. C.
Required: 1. Journalize the transactions under the periodic inventory system 2. Post the journal entries to the ledger using the following account titles: Cash, Accounts receivables, Accounts payable, Sales, Sales discount, Sales returns & allowances, Purchases, Purchase discounts and Purchase returns & allowances. 3. Prepare the Trial Balance as May 31, 2019. Purchased merchandise for P 50,000 on credit, terms 2/10, n/30 Sold merchandise for P 5,000 on credit, terms 2/30, n/30 Returned P 10,000 of the merchandise purchased on May 6 for credit. Paid merchandise purchased dated May 6, less return and discount. Received payment from the customer of May 10 with less discount. Sold merchandise for P 10,000 on credits, term 2/10, n/30. Customer of May 22 returned P 2,000 of merchandise for credit. Purchased merchandise for P 20,000 on credit, terms n/30. May 6 10 12 15 18 22 27 30
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