Required information[The following information applies to the questions displayed below.]Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactionsduring the month of October2 Purchased merchandise at a $3,000 price ($2,940 net), invoice dated October 2, terms 2/10, n/3010 Returned $500 ($490 net) of merchandise purchased on October 2, and debited its accounts payable for thatOctamount17 Purchased merchandise at a $5,400 price ($5,292 net), invoice dated October 17, terms 2/10, n/3027 Paid for the merchandise purchased on October 17, less the discount31 Paid for the merchandise purchased on October 2(b) Prepare entries to record the above transactions assuming that Piere Imports records invoices at net amountsView transaction listView journal entry worksheetNoDateGeneral JournalDebitCreditMerchandise inventory1Oct 022,940Accounts payable2,940Accounts payable2Oct 10490Merchandise inventory490Merchandise inventory3Oct 175,292Accounts payable5,292Accounts payable4Oct 27CashAccounts payable5Oct 31

Prepare the journal entry to record the purchase of inventory on account.

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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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Journalize the following inventory merchandise transactions, assuming that the company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Travis Company purchased merchandise on account from a supplier for $6,000, terms 2/10, net 30. 6 Travis Company paid for the merchandise within the discount period.
Journalize the following transactions that occurred in September for Lemon Field, assuming the perpetual inventory system is being used. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. (Record debits first, then credits. Exclude explanations from journal entries. Assume the company records sales using the gross method.) View the transactions. ... Transactions Sep. 3: Purchased merchandise inventory on account from Sidecki Wholesalers, $4,400. Terms 2/15, n/EOM, FOB shipping point. Sep. 3 Date Accounts Debit Credit Sep. 4 Purchased merchandise inventory on account from Sidecki Wholesalers, $4,400. Terms 2/15, n/EOM, FOB shipping point. Paid freight bill of $55 on September 3 purchase. Sep. 3 Sep. 4 Purchase merchandise inventory for cash of $2,000. Sep. 6 Sep. 8 Returned $500 of inventory from September 3 purchase. Sep. 9 Sep. 10 Sep. 12 Sep. 13 Sold merchandise inventory to Duluth Company, $5,600, on account. Terms…
On September 1, Dayne Ltd. purchased $9,500 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $200. Payment for the purchase was made on September 18. Assuming Dayne Ltd. uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as accounts payable from this purchase? Select one: a. $9,500. O b. $9,605. O c. $9,405. O d. $9,700.
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Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the gross method. July 1 Purchased merchandise from Boden Company for $6,800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Creek Company for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $567. July 3 Paid $100 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,100 for $2,500 cash. July 9 Purchased merchandise from Leight Company for $3,000 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $1,000 of merchandise purchased on July 9 from Leight Company and debited its account payable for that amount. July 12 Received the balance due from Creek Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Boden Company within the…

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