On October 5, Cullumber Company buys merchandise on account from Ayayai Company. The selling price of the goods is $5,000, a the cost to Ayayai Company is $2,500. On October 8, Cullumber returns defective goods with a selling price of $650 and a fair valu $235. Record the transactions on the books of Cullumber Company. (Credit account titles are automatically indented when amount is entered 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 (To record goods purchased on account) (To record return of defective goods) Debit Credit

On October 5, Cullumber Company buys merchandise on account from Ayayai Company. The selling price of the goods is $5,000, a the cost to Ayayai Company is $2,500. On October 8, Cullumber returns defective goods with a selling price of $650 and a fair valu $235. Record the transactions on the books of Cullumber Company. (Credit account titles are automatically indented when amount is entered 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 (To record goods purchased on account) (To record return of defective goods) Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EA: Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises....

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Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.
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