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Some of the transactions of Blossom Company during August are listed below. Blossom uses the periodic inventory method. August 10 13 15 25 28 Purchased merchandise on account, $12,500, terms 2/10, n/30. Returned part of the purchase of August 10, $1,300, and received credit on account. Purchased merchandise on account, $15,700, terms 1/10, n/60. Purchased merchandise on account, $19,800, terms 2/10, n/30. Paid invoice of August 15 in full.

Some of the transactions of Blossom Company during August are listed below. Blossom uses the periodic inventory method. August 10 13 15 25 28 Purchased merchandise on account, $12,500, terms 2/10, n/30. Returned part of the purchase of August 10, $1,300, and received credit on account. Purchased merchandise on account, $15,700, terms 1/10, n/60. Purchased merchandise on account, $19,800, terms 2/10, n/30. Paid invoice of August 15 in full.

FINANCIAL ACCOUNTING
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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Intermediate Accounting 105

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Some of the transactions of Blossom Company during August are listed below. Blossom uses the periodic inventory method. - **August 10:** Purchased merchandise on account, $12,500, terms 2/10, n/30. - **August 13:** Returned part of the purchase of August 10, $1,300, and received credit on account. - **August 15:** Purchased merchandise on account, $15,700, terms 1/10, n/60. - **August 25:** Purchased merchandise on account, $19,800, terms 2/10, n/30. - **August 28:** Paid invoice of August 15 in full.
Transcribed Image Text:Some of the transactions of Blossom Company during August are listed below. Blossom uses the periodic inventory method. - **August 10:** Purchased merchandise on account, $12,500, terms 2/10, n/30. - **August 13:** Returned part of the purchase of August 10, $1,300, and received credit on account. - **August 15:** Purchased merchandise on account, $15,700, terms 1/10, n/60. - **August 25:** Purchased merchandise on account, $19,800, terms 2/10, n/30. - **August 28:** Paid invoice of August 15 in full.
**Instructions for Financial Adjusting Entries** Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses, follow these steps: ### Task: Prepare the necessary adjusting entry on August 31 if financial statements are to be prepared at that time. **Guidelines:** - If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. - Credit account titles are automatically indented when an amount is entered. Do not indent manually. - List the debit entry before the credit entry. ### Entry Table: | Date | Account Titles and Explanation | Debit | Credit | |---------|--------------------------------|-------|--------| | Aug. 31 | | | | | | | | | This format is used to ensure clarity and accuracy in financial reporting by aligning with standard accounting practices.
Transcribed Image Text:**Instructions for Financial Adjusting Entries** Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses, follow these steps: ### Task: Prepare the necessary adjusting entry on August 31 if financial statements are to be prepared at that time. **Guidelines:** - If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. - Credit account titles are automatically indented when an amount is entered. Do not indent manually. - List the debit entry before the credit entry. ### Entry Table: | Date | Account Titles and Explanation | Debit | Credit | |---------|--------------------------------|-------|--------| | Aug. 31 | | | | | | | | | This format is used to ensure clarity and accuracy in financial reporting by aligning with standard accounting practices.
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