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Question: Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (1) Roley purchased $60,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Roley paid freight costs of $1,200. (b) On July 3, Roley returned damaged goods and received credit of $6,000. (c) On July 10, Roley paid for the goods. Prepare all necessary journal entries for Roley. No. Date (a) July 1 Account Titles and Explanation Debit Credit (1) (a) (2) (b) July 3 (c) July 10

Question: Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (1) Roley purchased $60,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Roley paid freight costs of $1,200. (b) On July 3, Roley returned damaged goods and received credit of $6,000. (c) On July 10, Roley paid for the goods. Prepare all necessary journal entries for Roley. No. Date (a) July 1 Account Titles and Explanation Debit Credit (1) (a) (2) (b) July 3 (c) July 10

FINANCIAL ACCOUNTING
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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Question: Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (1) Roley purchased $60,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Roley paid freight costs of $1,200. (b) On July 3, Roley returned damaged goods and received credit of $6,000. (c) On July 10, Roley paid for the goods. Prepare all necessary journal entries for Roley. No. Date (a) July 1 Account Titles and Explanation Debit Credit (1) (a) (2) (b) July 3 (c) July 10
Transcribed Image Text:Question: Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (1) Roley purchased $60,000 of inventory, terms 2/10, n/30, FOB shipping point. (2) Roley paid freight costs of $1,200. (b) On July 3, Roley returned damaged goods and received credit of $6,000. (c) On July 10, Roley paid for the goods. Prepare all necessary journal entries for Roley. No. Date (a) July 1 Account Titles and Explanation Debit Credit (1) (a) (2) (b) July 3 (c) July 10
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