Purchases and freight costB-05.05Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers.Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery recordsall purchases "gross" and uses a periodic inventory system.Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journa!entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000and freight is $100.Cash DiscountDiscount ConditionFreight TermsF.O.B. Shipping point/freight prepaidScenario2/10, n/30taken22/10, n/30FO.B. Shipping point/freight prepaidmissed3.2/10, n/30F.O.B. Destination/freight prepaidtaken42/10, n/30F.O.B. Destination/freight prepaidmissedF.O.B. Shipping point/freight collectF.O.B. Shipping point/freight collect2/10, n/30taken2/10, n/30missedThe first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet ver-sion expedites your solution by including a journal pick list of the following accounts:CashPurchasesAccounts PayablePurchase DiscountsFreight-in

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Description: Purchases and freight costB-05.05Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers.Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery recordsall purcha

Journal entry - It refers to the process where the business transactions are recorded in the books…

Business

Accounting

Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery records all purchases "gross" and uses a periodic inventory system. Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journal entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000 and freight is $100. Cash Discount Freight Terms FO.B. Shipping point/freight prepaid Scenario Discount Condition 2/10, n/30 taken 2/10, n/30 FO.B. Shipping point/freight prepaid missed 3 2/10, n/30 FO.B. Destination/freight prepaid taken FO.B. Destination/freight prepaid 4. 2/10, n/30 missed 5 2/10, n/30 F.O.B. Shipping point/freight collect taken 2/10, n/30 FO.B. Shipping point/freight collect missed The first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet ver- sion expedites your solution by including a journal pick list of the following accounts: Cash Purchases Accounts Payable Purchase Discounts Freight-in

Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery records all purchases "gross" and uses a periodic inventory system. Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journal entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000 and freight is $100. Cash Discount Freight Terms FO.B. Shipping point/freight prepaid Scenario Discount Condition 2/10, n/30 taken 2/10, n/30 FO.B. Shipping point/freight prepaid missed 3 2/10, n/30 FO.B. Destination/freight prepaid taken FO.B. Destination/freight prepaid 4. 2/10, n/30 missed 5 2/10, n/30 F.O.B. Shipping point/freight collect taken 2/10, n/30 FO.B. Shipping point/freight collect missed The first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet ver- sion expedites your solution by including a journal pick list of the following accounts: Cash Purchases Accounts Payable Purchase Discounts Freight-in

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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