LA Fashion uses the periodic inventory system. Record the journal entries required for the following three transactions (question 2.3 - 2.5): On 1 April 2021, Carin purchased 75 containers of shirts for $54,000 cash and also paid $500 transportation costs in cash related to this purchase. Record the journal entry for LA Fashion: [ Select ] 54,000
LA Fashion uses the periodic inventory system. Record the journal entries required for the following three transactions (question 2.3 - 2.5): On 1 April 2021, Carin purchased 75 containers of shirts for $54,000 cash and also paid $500 transportation costs in cash related to this purchase. Record the journal entry for LA Fashion: [ Select ] 54,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
Related questions
Question
![Read the following information to answer questions 2.1 - 2.2.
LA Fashion has credit sales of $6,400,000 for the financial year ending June 30, 2021, and estimates
at the end of the financial year that five per cent of accounts receivable will not be received.
Accounts receivable total $3,100,000. The corporation uses the allowance method to account for
bad debts, based on the percentage of receivables approach.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad9f85fe-0b70-4ba7-9aaa-2221d86301ac%2F9c714dda-200d-4a58-ac43-cb192119310c%2Fbeoa19p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Read the following information to answer questions 2.1 - 2.2.
LA Fashion has credit sales of $6,400,000 for the financial year ending June 30, 2021, and estimates
at the end of the financial year that five per cent of accounts receivable will not be received.
Accounts receivable total $3,100,000. The corporation uses the allowance method to account for
bad debts, based on the percentage of receivables approach.
![Question 2.3
LA Fashion uses the periodic inventory system. Record the journal entries required for the following
three transactions (question 2.3 - 2.5):
On 1 April 2021, Carin purchased 75 containers of shirts for $54,000 cash and also paid $500
transportation costs in cash related to this purchase. Record the journal entry for LA Fashion:
[ Select ]
54,000
[ Select ]
54,000
[ Select ]
500
[ Select ]
500
Question 24
Use the information in question 2.3 (above) when answering
question 2.4 (below).
Question 2.4
On 10 April, LA Fashion determined that six containers of shirts have quality defects, which cost
$7,500, so they were returned to the seller for a cash refund (recall that LA Fashion uses the periodic
inventory system). Record the journal entry for LA Fashion:
[ Select ]
7,500
[ Select ]
7,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad9f85fe-0b70-4ba7-9aaa-2221d86301ac%2F9c714dda-200d-4a58-ac43-cb192119310c%2F9vaheg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 2.3
LA Fashion uses the periodic inventory system. Record the journal entries required for the following
three transactions (question 2.3 - 2.5):
On 1 April 2021, Carin purchased 75 containers of shirts for $54,000 cash and also paid $500
transportation costs in cash related to this purchase. Record the journal entry for LA Fashion:
[ Select ]
54,000
[ Select ]
54,000
[ Select ]
500
[ Select ]
500
Question 24
Use the information in question 2.3 (above) when answering
question 2.4 (below).
Question 2.4
On 10 April, LA Fashion determined that six containers of shirts have quality defects, which cost
$7,500, so they were returned to the seller for a cash refund (recall that LA Fashion uses the periodic
inventory system). Record the journal entry for LA Fashion:
[ Select ]
7,500
[ Select ]
7,500
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