On June 16, 2014, ABC sold merchandise toXYZ with a list price of $10,000, tradediscount 20% and 25%, 2/10, n/30. They werereceived by XYZ on the same date. Freightcharges were $600.Under each of the following independentsituations, prepare all relevant journal entrieson the books of (a) ABC and (b) XYZ:a. FOB Shipping Point, freight collect. XYZsettled his account with ABC in full on June24.b. FOB Destination, freight prepaid. XYZsettled his account with ABC in full on June25.c. FOB Shipping Point, freight prepaid. XYZsettled his account with ABC in full on June26.d. FOB Destination, freight collect. XYZ settledhis account with ABC in full on June 24.e. FOB Shipping Point, freight collect. XYZsettled his account with ABC in full on June27.f. FOB Destination, freight collect. XYZ settledhis account with ABC in full on June 28.

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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:

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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Question

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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