Effect of purchase returns and allowances and purchase discounts on the financial statements: Perpetual system LO 3-2, 3-3 The following events were completed by Dana’s Imports in September, Year 1: Sept. 1 Acquired $47,000 cash from the issue of common stock. 1 Purchased $31,500 of merchandise on account with terms 2/10, n/30. 5 Paid $650 cash for freight to obtain merchandise purchased on September 1. 8 Sold merchandise that cost $10,750 to customers for $18,000 on account, with terms 2/10, n/30. 8 Returned $700 of defective merchandise from the September 1 purchase to the supplier. 10 Paid cash for the balance due on the merchandise purchased on September 1. 20 Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period. 30 Paid $3,200 cash for selling expenses.
Effect of purchase returns and allowances and purchase discounts on the financial statements: Perpetual system LO 3-2, 3-3 The following events were completed by Dana’s Imports in September, Year 1: Sept. 1 Acquired $47,000 cash from the issue of common stock. 1 Purchased $31,500 of merchandise on account with terms 2/10, n/30. 5 Paid $650 cash for freight to obtain merchandise purchased on September 1. 8 Sold merchandise that cost $10,750 to customers for $18,000 on account, with terms 2/10, n/30. 8 Returned $700 of defective merchandise from the September 1 purchase to the supplier. 10 Paid cash for the balance due on the merchandise purchased on September 1. 20 Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period. 30 Paid $3,200 cash for selling expenses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Effect of purchase returns and allowances and purchase discounts on the financial statements: Perpetual system LO 3-2, 3-3
The following events were completed by Dana’s Imports in September, Year 1:
| Sept. | 1 | Acquired $47,000 cash from the issue of common stock. | |
| 1 | Purchased $31,500 of merchandise on account with terms 2/10, n/30. | ||
| 5 | Paid $650 cash for freight to obtain merchandise purchased on September 1. | ||
| 8 | Sold merchandise that cost $10,750 to customers for $18,000 on account, with terms 2/10, n/30. | ||
| 8 | Returned $700 of defective merchandise from the September 1 purchase to the supplier. | ||
| 10 | Paid cash for the balance due on the merchandise purchased on September 1. | ||
| 20 | Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period. | ||
| 30 | Paid $3,200 cash for selling expenses. |
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education