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Under each of the following independent situations, prepare all relevant journal entries on the books of (a) ABC and (b) XYZ:

Under each of the following independent situations, prepare all relevant journal entries on the books of (a) ABC and (b) XYZ:

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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On June 16, 2014, ABC sold merchandise to XYZ with a list price of $10,000, trade discount 20% and 25%, 2/10, n/30. They were received by XYZ on the same date. Freight charges were $600. Under each of the following independent situations, prepare all relevant journal entries on the books of (a) ABC and (b) XYZ: a. FOB Shipping Point, freight collect. XYZ settled his account with ABC in full on June 24. b. FOB Destination, freight prepaid. XYZ settled his account with ABC in full on June 25. c. FOB Shipping Point, freight prepaid. XYZ settled his account with ABC in full on June 26. d. FOB Destination, freight collect. XYZ settled his account with ABC in full on June 24. e. FOB Shipping Point, freight collect. XYZ settled his account with ABC in full on June 27. f. FOB Destination, freight collect. XYZ settled his account with ABC in full on June 28.
Transcribed Image Text:On June 16, 2014, ABC sold merchandise to XYZ with a list price of $10,000, trade discount 20% and 25%, 2/10, n/30. They were received by XYZ on the same date. Freight charges were $600. Under each of the following independent situations, prepare all relevant journal entries on the books of (a) ABC and (b) XYZ: a. FOB Shipping Point, freight collect. XYZ settled his account with ABC in full on June 24. b. FOB Destination, freight prepaid. XYZ settled his account with ABC in full on June 25. c. FOB Shipping Point, freight prepaid. XYZ settled his account with ABC in full on June 26. d. FOB Destination, freight collect. XYZ settled his account with ABC in full on June 24. e. FOB Shipping Point, freight collect. XYZ settled his account with ABC in full on June 27. f. FOB Destination, freight collect. XYZ settled his account with ABC in full on June 28.
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