Cheese Factory uses a perpetual inventory system. The followingactivities occurred during May:• May 2 - Cheese Factory purchased $45,000 worth of inventory, oncredit terms 3/10 n/30.. May 5 - Cheese Factory returned $5,000 worth of that inventory tothe supplier.• May 9 - Cheese Factory paid for the inventory, taking advantage of allavailable discounts.Required:Prepare the journal entries to record the transactions above using thegross method. Use the MSWord link for the table to write your journalentries. After you have written the journal entries on the table in theMSWord document provided, put your name below the table on thedocument, save the document and then upload it to this problem in theupload space provided at the bottom of this box.

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Description: Cheese Factory uses a perpetual inventory system. The followingactivities occurred during May:• May 2 - Cheese Factory purchased $45,000 worth of inventory, oncredit terms 3/10 n/30.. May 5 - Cheese Factory returned $5,000 worth of that inventory to

In contrast to the net method approach, the gross method documents a bill at the total price,…

Business

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Cheese Factory uses a perpetual inventory system. The following activities occurred during May: • May 2 - Cheese Factory purchased $45,000 worth of inventory, on credit terms 3/10 n/30. . May 5 - Cheese Factory returned $5,000 worth of that inventory to the supplier. • May 9 - Cheese Factory paid for the inventory, taking advantage of all available discounts.

Cheese Factory uses a perpetual inventory system. The following activities occurred during May: • May 2 - Cheese Factory purchased $45,000 worth of inventory, on credit terms 3/10 n/30. . May 5 - Cheese Factory returned $5,000 worth of that inventory to the supplier. • May 9 - Cheese Factory paid for the inventory, taking advantage of all available discounts.

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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