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 (1) Account Titles and Explanation Debit Credit (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 (1) Account Titles and Explanation Debit Credit (a) (2) (b) July 3 (c) July 10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
(1)
Account Titles and Explanation Debit Credit
(a)
(2)
(b) July 3
(c) July 10
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