The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. Cash Accounts Payable (2) 150 (3) 1,980 (1) 13,860 (4) 11,880 (4) 11,880 Inventory (1) 13,860 (3) 1,980 (2) 150 a. Describe each transaction. 1. Purchased merchandise on account net of discount. 2. Paid freight. 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. V b. Determine the invoice amount of the merchandise that was returned in (3). 1,830.2 X

The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. Cash Accounts Payable (2) 150 (3) 1,980 (1) 13,860 (4) 11,880 (4) 11,880 Inventory (1) 13,860 (3) 1,980 (2) 150 a. Describe each transaction. 1. Purchased merchandise on account net of discount. 2. Paid freight. 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. V b. Determine the invoice amount of the merchandise that was returned in (3). 1,830.2 X

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 17E: Purchase-related transactions Based on the data presented in Exercise 5-16, journalize Balboa Co.s...

See similar textbooks

Similar questions

Purchase-related transactionsThe debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30.
The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. "SEE IMAGE"
a. Describe each transaction. b. What was the invoice amount of the merchandise that was returned?
The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB ship credit terms were 1/10, n/30. (2) (4) Inventory (3) Feedback Cash 13,860 150 150 (1) (2) a. Describe each transaction. 1. Purchased merchandise on account net of discount. 2. Paid freight. ✓ 3. An allowance for return of merchandise was granted by the creditor. 4. Paid the balance due within the discount period. 11,880 1,980 (3) (4) ✓ ✓ b. Determine the invoice amount of the merchandise that was returned in (3). X 4 Accounts Payable 1,980 (1) 11,880 ✓ 13,860 Check My Work Find the debit and credit(s) for each transaction and then consider the cause of each. Keep in mind that these are the records of a purchaser.
The debits and credits for five related transactions, (1) through (5), are presented in the following T accounts. Assume the credit terms were 2/10, n/30, using the net method under a perpetual inventory system. Cash Sales (5) 10,290 (1) 11,760 Accounts Receivable Cost of Goods Sold (1) 11,760 (3) 1,470 (2) 7,000 (5) 10,290 Inventory (4) 900 (2) 7,000 Estimated Returns Inventory (4) 900 Customer Refunds Payable (3) 1,470 a. Describe each transaction. 1. Sold merchandise on account, net of discount. V 2. Recorded the cost of the goods sold and reduced the inventory account. V 3. Granted a credit against a customer's accounts receivable for returned merchandise. V 4. Updated the inventory account for the cost of the merchandise returned. V 5. Received the balance due. V b. What was the invoice amount of the merchandise that was returned?
Freight terms Determine the amount to be paid in full settlement of each of the two invoices (a) and (b), assuming that the credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. A. Merchandise - $8,300.00 Freight Paid by Seller - $600.00 Freight Terms - FOB shipping point, 2/10, n/30 Returns and Allowance - $1,150.00 B. Merchandise - $4,400.00 Freight Paid by Seller - $600.00 Freight Terms - FOB destination, 1/10, n/30 Returns and Allowances - $900.00
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. a. b. a. b. Merchandise $120,800 147,700 00 Freight Paid by Seller $1,300 2,100 Freight Terms FOB shipping point, 1/10, n/30 FOB destination, 2/10, n/30
The debits and credits from four related transactions, (1) through (4), are presented in the following T accounts. Assume that the freight terms were FOB shipping point and that the credit terms were 1/10, n/30. Determine the invoice amount of the merchandise that was returned in (3). Inventory (1) 13860 Accounts Payable 13860Inventory (2) 150 Cash 150Accounts Payable (3) 1980 Inventory 1980Accounts Payable (4) 11880Cash 11880
An invoice received included the following information: merchandise price, $3,800; terms 1/10, n/eom; FOB shipping point with prepaid freight of $592. Assuming that a credit for merchandise returned of $800 is granted prior to payment and that the invoice is paid within the discount period, what amount of cash should be paid by the buyer? a. $3,800 b. $3,562 c. $4,348 d. $800
Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paidby Seller Freight Terms Returns andAllowances a. $13,200 $215 FOB Shipping Point, 1/10, net 30 $1,300 b. $10,400 $56 FOB Destination, 2/10, net 45 $2,300
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Credit forRefunds andAllowances a. $58,600 $1,300 FOB destination, 1/10, n/30 $6,500 b. 73,100 600 FOB shipping point, 2/10, n/30 3,900 a. $fill in the blank 1 b. $fill in the blank 2
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Credit forRefunds andAllowances a. $120,800 $1,300 FOB shipping point, 1/10, n/30 $20,100 b. 147,700 2,100 FOB destination, 2/10, n/30 11,400