Bramble Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, (1) Bramble purchased $42,000 of inventory, terms 3/10, n/30, FOB shipping point. (2) Bramble paid freight costs of $1,301. (a) (b) (c) On July 3, Bramble returned damaged goods and received credit of $4,200. On July 10, Bramble paid for the goods. Prepare all necessary journal entries for Bramble. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. hon amount is entered Do not indent manually. List all debit entries before credit entries.) AMAL sticall

Bramble Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, (1) Bramble purchased $42,000 of inventory, terms 3/10, n/30, FOB shipping point. (2) Bramble paid freight costs of $1,301. (a) (b) (c) On July 3, Bramble returned damaged goods and received credit of $4,200. On July 10, Bramble paid for the goods. Prepare all necessary journal entries for Bramble. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. hon amount is entered Do not indent manually. List all debit entries before credit entries.) AMAL sticall

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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On June 10, Blue Spruce Company purchased $8,400 of merchandise on account from Ayayai Company, FOB shipping point, terms 3/10, n/30. Blue Spruce pays the freight costs of $460 on June 11. Goods totaling $700 are returned to Ayayai for credit on June 12. On June 19, Blue Spruce pays Ayayai Company in full, less the discount. Both companies use a perpetual inventory system.
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Presented below are selected transactions for Flounder Company during September and October of the current year. Flounder uses a periodic inventory system. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $49,000, FOB destination, terms 1/15, n/30. 2 The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. 5 Returned for credit $2,240 of damaged goods purchased from Hillary Company on September 1. 15 Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $116,900, terms 2/10, n/30, FOB destination. 16 The correct company paid $2,500 of freight charges on the September 15 sale of merchandise. 17 Issued Irvine Company a credit of $5,600 for returned goods. These goods had cost Flounder Company $3,000 and were returned to inventory. 25 Received the balance owing from Irvine Company for the September 15 sale. 30 Paid Hillary Company the balance…
JC Manufacturing purchased inventory for $4,400 and also paid a $320 freight bill. JC Manufacturing returned 45% of the goods to the seller and later took a 1% purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing's final cost of the inventory that it kept? (Round your answer to the nearest whole number.) OA. $1,960 OB. $2,716 OC. $2,570 OD. $2,396
[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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