The following transactions are for Kingbird Company. On December 3, Kingbird Company sold $473,800 of merchandise to Blossom Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $320,000. On December 8, Blossom Co. was granted an allowance of $22,800 for merchandise purchased on December 3. On December 13, Kingbird Company received the balance due from Blossom Co. 1. 2. 3.

The following transactions are for Kingbird Company. On December 3, Kingbird Company sold $473,800 of merchandise to Blossom Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $320,000. On December 8, Blossom Co. was granted an allowance of $22,800 for merchandise purchased on December 3. On December 13, Kingbird Company received the balance due from Blossom Co. 1. 2. 3.

Name: Prepare the journal entries to record these transactions on the books
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Description: Prepare the journal entries to record these transactions on the books of Kingbird. Kingbird uses a perpetual inventory system. Exercise 5-04The following transactions are for Kingbird Company.On December 3, Kingbird Company sold $473,800 of merchandi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Prepare the journal entries to record these transactions on the books of Kingbird. Kingbird uses a perpetual inventory system.

Exercise 5-04
The following transactions are for Kingbird Company.
On December 3, Kingbird Company sold $473,800 of merchandise to Blossom Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $320,000.
On December 8, Blossom Co. was granted an allowance of $22,800 for merchandise purchased on December 3.
On December 13, Kingbird Company received the balance due from Blossom Co.
1.
2.
3.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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