Review the following situations and record any necessary journal entries for Mequon’s Boutique.May 10Mequon’s Boutique purchases $2,700 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $110 cash. Terms of the purchase are FOB Shipping Point.May 14Mequon’s Boutique sells $3,400 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Mequon’s of $1,800. Shipping charges are an extra $150 cash. Terms of the sale are FOB Shipping Point.If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used.

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Answered: Review the following situations and…

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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Review the following situations and record any necessary journal entries for Mequon’s Boutique.

May 10	Mequon’s Boutique purchases $2,700 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $110 cash. Terms of the purchase are FOB Shipping Point.
May 14	Mequon’s Boutique sells $3,400 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Mequon’s of $1,800. Shipping charges are an extra $150 cash. Terms of the sale are FOB Shipping Point.

If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used.

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