Question: This information relates to Crisp Co. (1) On April 5, purchased merchandise from Frost Company for $28,000, terms 2/10, n/30. (2) On April 6, paid freight costs of $700 on merchandise purchased from Frost. (3) On April 7, purchased equipment on account for $30,000. (4) On April 8, returned $3,600 of April 5 merchandise to Frost Company. (5) On April 15, paid the amount due to Frost Company in full. Required: A) Prepare the journal entries to record the transactions listed above on Crisp Co.'s books. Crisp Co. uses a perpetual inventory system. B) Assume that Crisp Co. paid the balance due to Frost Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Question: This information relates to Crisp Co. (1) On April 5, purchased merchandise from Frost Company for $28,000, terms 2/10, n/30. (2) On April 6, paid freight costs of $700 on merchandise purchased from Frost. (3) On April 7, purchased equipment on account for $30,000. (4) On April 8, returned $3,600 of April 5 merchandise to Frost Company. (5) On April 15, paid the amount due to Frost Company in full. Required: A) Prepare the journal entries to record the transactions listed above on Crisp Co.'s books. Crisp Co. uses a perpetual inventory system. B) Assume that Crisp Co. paid the balance due to Frost Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question:
This information relates to Crisp Co.
(1) On April 5, purchased merchandise from Frost Company for $28,000,
terms 2/10, n/30.
(2) On April 6, paid freight costs of $700 on merchandise purchased from Frost.
(3) On April 7, purchased equipment on account for $30,000.
(4) On April 8, returned $3,600 of April 5 merchandise to Frost Company.
(5) On April 15, paid the amount due to Frost Company in full.
Required:
A) Prepare the journal entries to record the transactions listed above on Crisp Co.'s
books. Crisp Co. uses a perpetual inventory system.
B) Assume that Crisp Co. paid the balance due to Frost Company on May 4 instead
of April 15. Prepare the journal entry to record this payment.
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