Required information [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $31,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $46,000 on October 12. Terms of the purchase were 2/10. "/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $660 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $20,400 was sold on account for $31,200. d. It was determined that inventory on hand at the end of October cost $56,340. Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Required information [The following information applies to the questions displayed below.] Autumn Company began the month of October with inventory of $31,000. The following inventory transactions occurred during the month: a. The company purchased inventory on account for $46,000 on October 12. Terms of the purchase were 2/10. "/30. Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight charges of $660 were paid in cash. b. On October 31, Autumn paid for the inventory purchased on October 12. c. During October inventory costing $20,400 was sold on account for $31,200. d. It was determined that inventory on hand at the end of October cost $56,340. Required: 1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Autumn Company began the month of October with inventory of $31,000. The following inventory transactions occurred
during the month:
a. The company purchased inventory on account for $46,000 on October 12. Terms of the purchase were 2/10. "/30.
Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight
charges of $660 were paid in cash.
b. On October 31, Autumn paid for the inventory purchased on October 12.
c. During October inventory costing $20,400 was sold on account for $31,200.
d. It was determined that inventory on hand at the end of October cost $56,340.
Required:
1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea36428-bfd1-4229-8ca7-8dbebf3c22dd%2F59c30940-6018-480a-b4f4-cf5492228b23%2Fp0crk8_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Autumn Company began the month of October with inventory of $31,000. The following inventory transactions occurred
during the month:
a. The company purchased inventory on account for $46,000 on October 12. Terms of the purchase were 2/10. "/30.
Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight
charges of $660 were paid in cash.
b. On October 31, Autumn paid for the inventory purchased on October 12.
c. During October inventory costing $20,400 was sold on account for $31,200.
d. It was determined that inventory on hand at the end of October cost $56,340.
Required:
1. Assuming Autumn Company uses a perpetual inventory system, prepare journal entries for the above transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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