Prepare the journal entries to record the following purchase transactions in Sunland Company's books. Sunland uses a perpetual inventory system. March 12 - Sunland purchased $16,000 of merchandise from Dalibor Company, terms 2/10, n/30, FOB destination. March 13 - The correct company paid freight costs of $195. March 14 - Sunland returned $2,000 of the merchandise purchased on March 12 because it was damaged. March 21 Sunland paid the balance owing to Dalibor.

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 7PA: Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks...
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Prepare the journal entries to record the following purchase transactions in Sunland Company's books. Sunland uses a perpetual inventory system. March 12 - Sunland purchased $16,000 of merchandise from Dalibor Company, terms 2/10, n/30, FOB destination. March 13 - The correct company paid freight costs of $195. March 14 - Sunland returned $2,000 of the merchandise purchased on March 12 because it was damaged. March 21 Sunland paid the balance owing to Dalibor.

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