Homework Help is Here – Start Your Trial Now!
Business
Accounting
ompany uses ntory system. 1. 2. On January 6, Cullumber Co. sells merchandise on account to Pryor Company for $5,450, terms 2/10, n/30. On January 16, Pryor Company pays the amount due. On January 10, D. Laskowski purchases $7,100 of merchandise from Bramble Co., terms 2/10, n/30. D. Laskowski returns $500 of merchandise to Bramble on January 15. Bramble Co. charges its customers 1% per month on overdue amounts. On March 10, Bramble records interest on D. Laskowski's past-due account. On March 11, D. Laskowski pays his account in full.

ompany uses ntory system. 1. 2. On January 6, Cullumber Co. sells merchandise on account to Pryor Company for $5,450, terms 2/10, n/30. On January 16, Pryor Company pays the amount due. On January 10, D. Laskowski purchases $7,100 of merchandise from Bramble Co., terms 2/10, n/30. D. Laskowski returns $500 of merchandise to Bramble on January 15. Bramble Co. charges its customers 1% per month on overdue amounts. On March 10, Bramble records interest on D. Laskowski's past-due account. On March 11, D. Laskowski pays his account in full.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question
i need the answer quickly
Presented below are two independent situations. Assume each company uses a periodic inventory system. 1. On January 6, Cullumber Co. sells merchandise on account to Pryor Company for $5,450, terms 2/10, n/30. On January 16, Pryor Company pays the amount due. 2. On January 10, D. Laskowski purchases $7,100 of merchandise from Bramble Co., terms 2/10, n/30. D. Laskowski returns $500 of merchandise to Bramble on January 15. Bramble Co. charges its customers 1% per month on overdue amounts. On March 10, Bramble records interest on D. Laskowski's past-due account. On March 11, D. Laskowski pays his account in full. (a) For item 1, prepare the entries on January 6 and January 16 on Cullumber Co.'s books. Ignore any inventory and cost of goods sold entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles Jan. 6 Accounts Receivable Sales Jan. 10 Accounts Payable Debit 5,450 Credit 5,450
Transcribed Image Text:Presented below are two independent situations. Assume each company uses a periodic inventory system. 1. On January 6, Cullumber Co. sells merchandise on account to Pryor Company for $5,450, terms 2/10, n/30. On January 16, Pryor Company pays the amount due. 2. On January 10, D. Laskowski purchases $7,100 of merchandise from Bramble Co., terms 2/10, n/30. D. Laskowski returns $500 of merchandise to Bramble on January 15. Bramble Co. charges its customers 1% per month on overdue amounts. On March 10, Bramble records interest on D. Laskowski's past-due account. On March 11, D. Laskowski pays his account in full. (a) For item 1, prepare the entries on January 6 and January 16 on Cullumber Co.'s books. Ignore any inventory and cost of goods sold entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles Jan. 6 Accounts Receivable Sales Jan. 10 Accounts Payable Debit 5,450 Credit 5,450
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS