Bae Company (buyer) and Johnson, Inc. (seller), engaged in the following transactions during February 20X1:Bae CompanyDATETRANSACTIONS20X1Feb. 10 Purchased merchandise for $4,000 from Johnson, Inc., Invoice 1980, terms 1/1e, n/30.13 Received Credit Memorandum 230 from Johnson, Inc., for damaged merchandise totaling $300 that was returned; the goodswere purchased on Invoice 1980, dated February 10.19 Paid amount due to Johnson, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cashdiscount, Check 2010.Johnson, Inc.DATETRANSACTIONS20X1Feb. 10 Sold merchandise for $4,000 on account to Bae Company, Invoice 1980, terms 1/10, n/30.13 Issued Credit Memorandum 230 to Bae Company for damaged merchandise totaling $300o that was returned; the goods werepurchased on Invoice 1980, dated February 10.19 Received payment from Bae Company for Invoice 1980 of February 10, less the return of February 13 and less the cashdiscount, Check 2010.Required:Journalize the transactions above in a general journal for both Bae Company and Johnson, Inc.

Journal Entry - It records the business transaction on day to day basis, whether it is economic…

Bae Company (buyer) and Johnson, Inc. (seller), engaged in the following transactions during February 20X1: Bae Company DATE TRANSACTIONS 20x1 Feb. 10 Purchased merchandise for $4,000 from Johnson, Inc., Invoice 1980, terms 1/10, n/30. 13 Received Credit Memorandum 230 from Johnson, Inc., for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1980, dated February 10. 19 Paid amount due to Johnson, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010. Johnson, Inc. DATE 20X1 TRANSACTIONS Feb. 10 Sold merchandise for $4,000 on account to Bae Company, Invoice 1980, terms 1/10, n/30. 13 Issued Credit Memorandum 230 to Bae Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1980, dated February 10. 19 Received payment from Bae Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010. Required: Journalize the transactions above in a general journal for both Bae Company and Johnson, Inc.

Bae Company (buyer) and Johnson, Inc. (seller), engaged in the following transactions during February 20X1: Bae Company DATE TRANSACTIONS 20x1 Feb. 10 Purchased merchandise for $4,000 from Johnson, Inc., Invoice 1980, terms 1/10, n/30. 13 Received Credit Memorandum 230 from Johnson, Inc., for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1980, dated February 10. 19 Paid amount due to Johnson, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010. Johnson, Inc. DATE 20X1 TRANSACTIONS Feb. 10 Sold merchandise for $4,000 on account to Bae Company, Invoice 1980, terms 1/10, n/30. 13 Issued Credit Memorandum 230 to Bae Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1980, dated February 10. 19 Received payment from Bae Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010. Required: Journalize the transactions above in a general journal for both Bae Company and Johnson, Inc.

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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