Pharoah Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Pronghorn Ltd. for $32,000, terms 2/10, n/30, FOB shipping point. 6 The appropriate company paid freight costs of $800 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5,200. 8 Returned merchandise to Pronghorn and received a credit of $3,000. The merchandise was returned to inventory for future resale. 30 Paid the amount due to Pronghorn in full. Additional information: 1. The cost of the merchandise sold on April 3 was $21,700. 2. The cost of the merchandise returned on April 8 was $1,950. 3. Pronghorn uses a perpetual inventory system. Record the transactions in the books of Pronghorn. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation = (To record credit sale) (To record cost of merchandise sold) (To record return of goods) (To record cost of merchandise returned) Debit Credit
Pharoah Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Pronghorn Ltd. for $32,000, terms 2/10, n/30, FOB shipping point. 6 The appropriate company paid freight costs of $800 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5,200. 8 Returned merchandise to Pronghorn and received a credit of $3,000. The merchandise was returned to inventory for future resale. 30 Paid the amount due to Pronghorn in full. Additional information: 1. The cost of the merchandise sold on April 3 was $21,700. 2. The cost of the merchandise returned on April 8 was $1,950. 3. Pronghorn uses a perpetual inventory system. Record the transactions in the books of Pronghorn. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation = (To record credit sale) (To record cost of merchandise sold) (To record return of goods) (To record cost of merchandise returned) Debit Credit
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter9: Sales And Purchases
Section: Chapter Questions
Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...
Related questions
Question
Transcribed Image Text:Pharoah Corp. uses a perpetual inventory system. The company had the following inventory transactions in April:
April
3
Purchased merchandise from Pronghorn Ltd. for $32,000, terms 2/10, n/30, FOB shipping point.
6
The appropriate company paid freight costs of $800 on the merchandise purchased on April 3.
7
Purchased supplies on account for $5,200.
8
Returned merchandise to Pronghorn and received a credit of $3,000. The merchandise was returned to inventory
for future resale.
30
Paid the amount due to Pronghorn in full.
Additional information:
1.
The cost of the merchandise sold on April 3 was $21,700.
2.
The cost of the merchandise returned on April 8 was $1,950.
3.
Pronghorn uses a perpetual inventory system.
Record the transactions in the books of Pronghorn. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amount
in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Record
journal entries in the order presented in the problem. List all debit entries before credit entries.)
Date
Account Titles and Explanation
=
(To record credit sale)
(To record cost of merchandise sold)
(To record return of goods)
(To record cost of merchandise returned)
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning