On June 10, Ayayai Company purchased $8,900 of merchandise on account from Whispering Winds Company, FOB shipping point, terms 2/10, n/30. Ayayai pays the freight costs of $510 on June 11. Goods totaling $700 are returned to Whispering Winds for credit on June 12. On June 19, Ayayai pays Whispering Winds Company in full, less the discount. Both companies use a perpetual inventory system. (a) Your answer is partially correct. Prepare separate entries for each transaction on the books of Ayayai Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation June 10 Accounts Receivable Sales Revenue June 10 Cost of Goods Sold Inventory Debit 8900 4900 Credit 8900 4900
On June 10, Ayayai Company purchased $8,900 of merchandise on account from Whispering Winds Company, FOB shipping point, terms 2/10, n/30. Ayayai pays the freight costs of $510 on June 11. Goods totaling $700 are returned to Whispering Winds for credit on June 12. On June 19, Ayayai pays Whispering Winds Company in full, less the discount. Both companies use a perpetual inventory system. (a) Your answer is partially correct. Prepare separate entries for each transaction on the books of Ayayai Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation June 10 Accounts Receivable Sales Revenue June 10 Cost of Goods Sold Inventory Debit 8900 4900 Credit 8900 4900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 10, Ayayai Company purchased $8,900 of merchandise on account from Whispering Winds Company, FOB shipping point,
terms 2/10, n/30. Ayayai pays the freight costs of $510 on June 11. Goods totaling $700 are returned to Whispering Winds for credit
on June 12. On June 19, Ayayai pays Whispering Winds Company in full, less the discount. Both companies use a perpetual inventory
system.
(a)
-
Your answer is partially correct.
Prepare separate entries for each transaction on the books of Ayayai Company. (Credit account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.
Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
June 10
Accounts Receivable
Sales Revenue
June 10
Cost of Goods Sold
Inventory
Debit
8900
4900
Credit
8900
4900
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