Bedrock Wholesale has the following transactions during the month of October 2021: Oct. 1 Oct. 2 Oct. 6 Oct. 7 Oct. 8 Oct. 12 Purchased inventory from Fred Inc. for $25,000, FOB destination, terms 2/10 n/30. Oct. 17 The appropriate company paid $100 freight on the October 1 purchase. Returned $3,000 worth of goods to Fred as they were the wrong colour. Oct. 10 Paid Fred the entire amount owed to him. Oct. 22 Sold half of the remaining inventory purchased from Fred to Wilma Inc. for $16,000, FOB destination, terms 2/20 n/30. The appropriate company paid $450 freight on the October 7 sale. Oct. 13 The appropriate company paid $225 freight on the October 12 purchase. Sold half of the inventory purchased from Barney to Betty Ltd. for $10,000, FOB shipping point, terms 1/10 n/20. Purchased inventory worth $15,000 from Barney Inc., FOB shipping point, terms 3/15 n/45. Oct. 18 The appropriate company paid $80 freight on the October 17 sale. Betty returned $3,000 worth of the goods bought on October 17 as you shipped the wrong size. Oct. 25 Betty paid their outstanding balance. Oct. 30 Wilma paid their outstanding balance. Oct. 31 Paid Barney the entire amount owed to him.
How would Bedrock Wholesale record the October 1 transaction?
a. Increase both Accounts Payable and Inventory
b. Increase both Purchases and Inventory
c. Increase both Accounts Payable and Inventory Expense
d. Increase both Purchases and Inventory Expense
e. Increase both Accounts Payable and Purchases
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 2 transaction?
a. Increase both Inventory and Accounts Payable
b. Increase Freight Expense and decrease Cash
c. Increase both Freight Expense and Accounts Payable
d. Increase both Inventory and Freight Expense
e. No entry is required.
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 6 transaction?
a. Decrease both Purchases and Inventory Expense
b. Decrease Inventory and increase Purchase Returns
c. Decrease both Accounts Payable and Inventory
d. Decrease both Accounts Payable and Inventory Expense
e. Decrease Accounts Payable and increase Purchase Returns
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 7 transaction?
a. Increase Sales and
b. Increase Sales and Accounts Receivable $16,000 each, and increase Cost of Goods Sold and decrease Inventory $16,000 each
c. Increase Sales and Accounts Receivable $16,000 each
d. Increase Sales and Accounts Receivable $16,000 each, and increase Cost of Goods Sold and decrease Inventory $11,000 each
e. Increase Cost of Goods Sold and decrease Inventory $11,000 each
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 8 transaction?
a. Increase both Accounts Payable and Freight Expense
b. Decrease Cash and increase Freight Expense
c. Decrease both Cash and Inventory
d. Decrease both Cash and Inventory
e. No entry is required
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 10 transaction?
a. Decrease Cash, Inventory, and Accounts Payable.
b. Decrease Cash and Accounts Payable, and increase Inventory.
c. Decrease Cash and Inventory, and increase Accounts Payable.
d. Decrease Cash and increase both Inventory and Accounts Payable.
e. Decrease Cash and Accounts Payable only.
Enter the letter that corresponds to your choice. (A B C D E)
How much does Bedrock Wholesale pay Fred on October 10?
How would Bedrock Wholesale record the October 12 transaction?
a. Increase both Purchases and Inventory Expense
b. Increase both Accounts Payable and Purchases
c. Increase both Purchases and Inventory
d. Increase both Accounts Payable and Inventory
e. Increase both Accounts Payable and Inventory Expense
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 13 transaction?
a. Increase Inventory and decrease Cash
b. Increase Freight Expense and decrease Cash
c. Increase both Inventory and Accounts Payable
d. Increase both Freight Expense and Inventory
e. No entry is required.
Enter the letter that corresponds to your choice. (A B C D E)
How would Bedrock Wholesale record the October 17 transaction?
a. Increase Cost of Goods Sold and decrease Inventory $7,500 each
b. Increase Sales and Accounts Receivable $10,000 each
c. Increase Sales and Accounts Receivable $7,500 each, and increase Cost of Goods Sold and decrease Inventory $10,000 each
d. Increase Sales and Accounts Receivable $10,000 each, and increase Cost of Goods Sold and decrease Inventory $7,500 each
e. Increase Sales and Accounts Receivable $7,500 each, and increase Cost of Goods Sold and decrease Inventory $7,500 each
Enter the letter that corresponds to your choice. (A B C D E)
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