Consider the following transactions for BigGuy Toys​: Apr. 7 BigGuy Toys purchased $198,800 worth of MegoBlock toys on account with credit terms of 2/10, n/60. Apr. 13 BigGuy Toys returned $19,800 of the merchandise to MegoBlock due to damage during shipment. Apr. 15 BigGuy Toys paid the amount due, less the return and discount.   Requirements 1. Journalize the purchase transactions. Explanations are not required. 2. In the final​ analysis, how much did the inventory cost BigGuy Toys​?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Consider the following transactions for
BigGuy Toys​:
Apr. 7
BigGuy Toys purchased $198,800 worth of MegoBlock toys on account with credit terms of 2/10, n/60.
Apr. 13
BigGuy Toys returned $19,800 of the merchandise to MegoBlock due to damage during shipment.
Apr. 15
BigGuy Toys paid the amount due, less the return and discount.
 
Requirements
1.
Journalize the purchase transactions. Explanations are not required.
2.
In the final​ analysis, how much did the inventory cost
BigGuy Toys​?
 
Requirement 1. Journalize the purchase transactions. Explanations are not required. ​(Assume the company uses a perpetual inventory system. Record debits​ first, then credits. Exclude explanations from journal​ entries.)
 
Apr.
7​:
BigGuy Toys
purchased
$198,800
worth of
MegoBlock
toys on account with credit terms of 2/10, n/60.
 
Date
Accounts
Debit
Credit
Apr. 7
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Apr.
13​:
BigGuy Toys
returned
$19,800
of the merchandise to
MegoBlock
due to damage during shipment.
 
Date
Accounts
Debit
Credit
Apr. 13
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Apr.
15​:
BigGuy Toys
paid the amount​ due, less the return and discount.
 
Date
Accounts
Debit
Credit
Apr. 15
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Requirement 2. In the final​ analysis, how much did the inventory cost
BigGuy Toys​?
 
The inventory cost for BigGuy Toys is
 
 
 
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