E5.2 "Information related to Almond Co. is presented below. 1. On April 5. purchased merchandise from Morris Company for $25,000, terms 2/10, net/30, FOB shipping point. 2. On April 6. paid freight costs of $900 on merchandise purchased from Morris. 3. On April 7, purchased equipment on account for $26,000. 4. On April 8, returned damaged merchandise to Morris Company and was granted a $4,000 credit for returned merchandise. 5. On April 15, paid the amount due to Morris Company in full. Instructions: (a) Prepare the joumal entries to record these transactions on the books of Álmond Co. under a perpetual inventory system. (b) Assume that Almond Co. paid the balance due to Morris Company on May 4 instead of April 15. Prepare the journal entry to record this paýment

E5.2 "Information related to Almond Co. is presented below. 1. On April 5. purchased merchandise from Morris Company for $25,000, terms 2/10, net/30, FOB shipping point. 2. On April 6. paid freight costs of $900 on merchandise purchased from Morris. 3. On April 7, purchased equipment on account for $26,000. 4. On April 8, returned damaged merchandise to Morris Company and was granted a $4,000 credit for returned merchandise. 5. On April 15, paid the amount due to Morris Company in full. Instructions: (a) Prepare the joumal entries to record these transactions on the books of Álmond Co. under a perpetual inventory system. (b) Assume that Almond Co. paid the balance due to Morris Company on May 4 instead of April 15. Prepare the journal entry to record this paýment

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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