Requirement :1. The company purchased inventory on account for $25000 on October 12. Terms of purchase were 3/10, n/30. Autumn uses the net method to record purchases.2. The inventory was shipped f.o.b shipping point and freight charges of $520 were paid in cash.3. On October 31, Autumn paid for the inventory purchased on October 12.4. Record the sale of inventory on account.5. Record the cost of goods sold.6. Record any necessary adjusting entry when the inventory on hand at the end of October cost $23,470. [The following information applies to the questions displayed below.]Autumn Company began the month of October with inventory of $17,000. The following inventory transactions occurredduring the month:a. The company purchased inventory on account for $25,000 on October 12. Terms of the purchase were 3/10, 1/30 -Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freightcharges of $520 were paid in cash.b. On October 31, Autumn paid for the inventory purchased on October 12.c. During October inventory costing $18,300 was sold on account for $28,400.d. It was determined that inventory on hand at the end of October cost $23,470.2. Assuming Autumn Company uses a periodic inventory system, prepare journal entries for the above transactions including theadjusting entry at the end of October to record cost of goods sold. Autumn considers purchase discounts lost as part of interestexpense.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Name: Requirement :1. The company purchased inventory on account for $25000
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Description: Requirement :1. The company purchased inventory on account for $25000 on October 12. Terms of purchase were 3/10, n/30. Autumn uses the net method to record purchases.2. The inventory was shipped f.o.b shipping point and freight charges of $520 were

A periodic inventory system represents that the company would be required to count the inventory on…

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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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Requirement :

1. The company purchased inventory on account for $25000 on October 12. Terms of purchase were 3/10, n/30. Autumn uses the net method to record purchases.

2. The inventory was shipped f.o.b shipping point and freight charges of $520 were paid in cash.

3. On October 31, Autumn paid for the inventory purchased on October 12.

4. Record the sale of inventory on account.

5. Record the cost of goods sold.

6. Record any necessary adjusting entry when the inventory on hand at the end of October cost $23,470.

[The following information applies to the questions displayed below.]
Autumn Company began the month of October with inventory of $17,000. The following inventory transactions occurred
during the month:
a. The company purchased inventory on account for $25,000 on October 12. Terms of the purchase were 3/10, 1/30 -
Autumn uses the net method to record purchases. The inventory was shipped f.o.b. shipping point and freight
charges of $520 were paid in cash.
b. On October 31, Autumn paid for the inventory purchased on October 12.
c. During October inventory costing $18,300 was sold on account for $28,400.
d. It was determined that inventory on hand at the end of October cost $23,470.
2. Assuming Autumn Company uses a periodic inventory system, prepare journal entries for the above transactions including the
adjusting entry at the end of October to record cost of goods sold. Autumn considers purchase discounts lost as part of interest
expense.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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