On June 1, 2020 Comfort Creamery Corp. purchased 9,000 wooden barrels on account for $900,000 (purchase price of $100/barrel). The terms of the purchase were 2/10, n/30. Comfort Creamery Corp. accounts for such purchases using the net method. Required: 1. Prepare the journal entry to record the purchase of 9,000 wooden barrels. 2. Comfort Creamery Corp. paid for the barrels on June 17, 2020. Prepare the journal entry to record the payment for the 9,000 wooden barrels.
On June 1, 2020 Comfort Creamery Corp. purchased 9,000 wooden barrels on account for $900,000 (purchase price of $100/barrel). The terms of the purchase were 2/10, n/30. Comfort Creamery Corp. accounts for such purchases using the net method. Required: 1. Prepare the journal entry to record the purchase of 9,000 wooden barrels. 2. Comfort Creamery Corp. paid for the barrels on June 17, 2020. Prepare the journal entry to record the payment for the 9,000 wooden barrels.
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 7RE: At the end of Year 1, Herkimer Co. sells two laptops for 1,800 each. Based on the information in...
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