Information related to Swifty Co. is presented below. 1. 2. 3. 4. 5. On April 5, purchased merchandise from Mockingbird Company for $20,200 terms 2/10, net/30, FOB shipping point. On April 6 paid freight costs of $520 on merchandise purchased from Mockingbird. On April 7, purchased equipment on account for $29,200. On April 8, returned damaged merchandise to Mockingbird Company and was granted a $4,900 credit for returned merchandise. On April 15 paid the amount due to Mockingbird Company in full.

Information related to Swifty Co. is presented below. 1. 2. 3. 4. 5. On April 5, purchased merchandise from Mockingbird Company for $20,200 terms 2/10, net/30, FOB shipping point. On April 6 paid freight costs of $520 on merchandise purchased from Mockingbird. On April 7, purchased equipment on account for $29,200. On April 8, returned damaged merchandise to Mockingbird Company and was granted a $4,900 credit for returned merchandise. On April 15 paid the amount due to Mockingbird Company in full.

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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Question

Prepare the journal entries to record these transactions on the book of Swifty cO.under a perpetual inventory system

Information related to Swifty Co. is presented below.
1.
2.
3.
4.
5.
On April 5, purchased merchandise from Mockingbird Company for $20,200 terms 2/10, net/30, FOB shipping point.
On April 6 paid freight costs of $520 on merchandise purchased from Mockingbird.
On April 7, purchased equipment on account for $29,200.
On April 8, returned damaged merchandise to Mockingbird Company and was granted a $4,900 credit for returned
merchandise.
On April 15 paid the amount due to Mockingbird Company in full.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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