Record these business transactions in debit and credit format a) The Company purchased Inventory on 30 day credit terms for $ 90,000 (2/10,net 30) b) The Company purchased the inventory above on FOB shipping point terms. Freight cost is $1,200 c) $5,000 of the Inventory was damage upon receipt and the Company returned it. d) The Company took the discount offered in item A above and paid the balance due within 10days e) The Company had sales revenue to customers of $ 200,000 which were sold on 2/10 net 30 credit terms. f) The product sold in e) above had a cost of $70,000 g) The Company received cash for payment of Accounts Receivable within the 10 days h) The Company had sales revenue to customers of $ 100,000 on account i) The Company determined that it required an allowance for doubtful accounts of 3 % of the outstanding Accounts Receivable at year end. ( Determine the outstanding AR from the above transactions)

Record these business transactions in debit and credit format a) The Company purchased Inventory on 30 day credit terms for $ 90,000 (2/10,net 30) b) The Company purchased the inventory above on FOB shipping point terms. Freight cost is $1,200 c) $5,000 of the Inventory was damage upon receipt and the Company returned it. d) The Company took the discount offered in item A above and paid the balance due within 10days e) The Company had sales revenue to customers of $ 200,000 which were sold on 2/10 net 30 credit terms. f) The product sold in e) above had a cost of $70,000 g) The Company received cash for payment of Accounts Receivable within the 10 days h) The Company had sales revenue to customers of $ 100,000 on account i) The Company determined that it required an allowance for doubtful accounts of 3 % of the outstanding Accounts Receivable at year end. ( Determine the outstanding AR from the above transactions)

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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shany market recorded the following events involving a recent purchase of inventory received goods for$30,000, terms 2/10, n/30 returned $600 of the shipment for credit paid $150 freight on the shipment paid the invoice within the discount period as a result of these events, the company's inventory: increased by
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