On June 10, Tuzun Company purchased $8,000 of merchandise on account from Epps Company, FOB shipping point, terms 2/10, n/30. Tuzun Company pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returnedto Epps for credit on June 12. The fair value of these goods is $70. On June 19, fuzun Company pays Epps Company in full, less the purchase discount. Both companies use a perpetual inventory system.Preparé separate entries for each transaction on the books of Tuzun Comnpany. (Credit account titles are automatically Indentedd when amount is entered. Do not indent manually. If no entry is required, select "No Entry" forthe account titles and enter 0 fer the amounts. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCreditJune 10 vInventory8000Accounts Payable8000June 11 vInventory400Cash400June 12 vAccounts Payable300Inventory300June 19 vAccounts Payable7700Cash7546Purchase Discounts154 Prepare separate entries for each transaction for Epps Company. The merchandise purchased by Tuzun Company on June 10 had cost Epps $4,800. (Credit account titles are automatically indented whenindent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCredit(To record credit sale)(To record cost of merchandise sold)(To record merchandise returned)(To record cost of merchandise returned)June 19

Purchase discount = (Purchases - purchase return) x discount rate = ($8000 - $300) x 2% = $154

On June 10, Tuzun Company purchased $8,000 of merchandise on account from Epps Company, FOB shipping point. terms 2/10, n/30, Tuzun Company pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returne to Epps for credit on June 12. The fair value of these goods is $70. On June 19, Tuzun Company pays Epps Company in full, less the purchase discount. Both companies use a perpetual inventory system. Preparé separate entries for each transaction on the books of Tuzun Comnpany. (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 0 fer the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Credit Debit June 10 v Inventory 8000 Accounts Payable 8000 June 11 v Inventory 400 Cash 400 June 12 v Accounts Payable 300 Inventory 300 June 19 v Accounts Payable 7700 Cash 7546 Purchase Discounts 154

On June 10, Tuzun Company purchased $8,000 of merchandise on account from Epps Company, FOB shipping point. terms 2/10, n/30, Tuzun Company pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returne to Epps for credit on June 12. The fair value of these goods is $70. On June 19, Tuzun Company pays Epps Company in full, less the purchase discount. Both companies use a perpetual inventory system. Preparé separate entries for each transaction on the books of Tuzun Comnpany. (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 0 fer the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Credit Debit June 10 v Inventory 8000 Accounts Payable 8000 June 11 v Inventory 400 Cash 400 June 12 v Accounts Payable 300 Inventory 300 June 19 v Accounts Payable 7700 Cash 7546 Purchase Discounts 154

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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