Prepare the necessary journal entries (include journal entry descriptions) for the selected transactions of Ink Company whose fiscal year end is December 31. Ink uses the net method to record inventory transactions (the method outlined in your textbook and my PowerPoint). You MUST show the details of any calculations either in parenthesis or as a footnote. Date Transaction Description Sold inventory, $9,000, terms FOB shipping point. The cost of the inventory sold was $6,000. 2/7/20Y8 Issued customer a refund of $400 for return of unwanted inventory related to the February 7th sale. The cost of the merchandise return was $250. 2/12/20Y8 4/13/20Y8 Purchased inventory on account, $5,000, terms FOB shipping point, 1/15, n/45. 4/14/20Y8 Paid freight of $200 to UPS related to the April 13th purchase. 4/16/20Y8 Returned damaged inventory from April 13th purchase, $300. 5/10/20Y8 Paid for the purchase on April 13th less the return on April 16th. 8/27/20Y8 Sold inventory on account, $2,000, terms FOB shipping point, subject to an 8% sales tax. The cost of the inventory sold was $1,200.

Prepare the necessary journal entries (include journal entry descriptions) for the selected transactions of Ink Company whose fiscal year end is December 31. Ink uses the net method to record inventory transactions (the method outlined in your textbook and my PowerPoint). You MUST show the details of any calculations either in parenthesis or as a footnote. Date Transaction Description Sold inventory, $9,000, terms FOB shipping point. The cost of the inventory sold was $6,000. 2/7/20Y8 Issued customer a refund of $400 for return of unwanted inventory related to the February 7th sale. The cost of the merchandise return was $250. 2/12/20Y8 4/13/20Y8 Purchased inventory on account, $5,000, terms FOB shipping point, 1/15, n/45. 4/14/20Y8 Paid freight of $200 to UPS related to the April 13th purchase. 4/16/20Y8 Returned damaged inventory from April 13th purchase, $300. 5/10/20Y8 Paid for the purchase on April 13th less the return on April 16th. 8/27/20Y8 Sold inventory on account, $2,000, terms FOB shipping point, subject to an 8% sales tax. The cost of the inventory sold was $1,200.

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Description: Prepare the necessary journal entries (include journal entry descriptions) for the selectedtransactions of Ink Company whose fiscal year end is December 31%. Ink uses the net method torecord inventory transactions (the method outlined in your textbo

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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