On June 10, Oriole Company purchased $9,500 of merchandise on account from Sheffield Company, FOB shipping point, terms 2/10, n/30. Oriole pays the freight costs of $550 on June 11. Goods totaling $400 are returned to Sheffield for credit on June 12. On June 19, Oriole pays Sheffield Company in full, less the discount. Both companies use a perpetual inventory system.   1. Prepare separate entries for each transaction on the books of Oriole Company. (List all debit entries before credit entries. 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 for the amounts.)   2. Prepare separate entries for each transaction for Sheffield Company. The merchandise purchased by Oriole on June 10 cost Sheffield $5,200, and the goods returned cost Sheffield $200. (List all debit entries before credit entries. 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 for the amounts.)

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 5E
icon
Related questions
Question
100%

On June 10, Oriole Company purchased $9,500 of merchandise on account from Sheffield Company, FOB shipping point, terms 2/10, n/30. Oriole pays the freight costs of $550 on June 11. Goods totaling $400 are returned to Sheffield for credit on June 12. On June 19, Oriole pays Sheffield Company in full, less the discount. Both companies use a perpetual inventory system.

 

1. Prepare separate entries for each transaction on the books of Oriole Company. (List all debit entries before credit entries. 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 for the amounts.)

 

2. Prepare separate entries for each transaction for Sheffield Company. The merchandise purchased by Oriole on June 10 cost Sheffield $5,200, and the goods returned cost Sheffield $200. (List all debit entries before credit entries. 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 for the amounts.)

 

3. 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for discounts
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College