Whispering Winds Corp. uses a periodic inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Ayayai Ltd. for $25,300, terms n/30, FOB shipping point. The appropriate company paid freight costs of $690 on the merchandise purchased on April 3. Purchased supplies on account for $5,090. Returned damaged merchandise to Ayayai received a credit of $3,700. The merchandise was returned to inventory for future resale. Paid the amount due to Ayayai in full. 6 7 8 30
Whispering Winds Corp. uses a periodic inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from Ayayai Ltd. for $25,300, terms n/30, FOB shipping point. The appropriate company paid freight costs of $690 on the merchandise purchased on April 3. Purchased supplies on account for $5,090. Returned damaged merchandise to Ayayai received a credit of $3,700. The merchandise was returned to inventory for future resale. Paid the amount due to Ayayai in full. 6 7 8 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Ayayai Ltd.
Date
Apr. 3
V
<
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Whispering Winds Corp. uses a periodic inventory system. The company had the following inventory transactions in April:
April 3 Purchased merchandise from Ayayai Ltd. for $25,300, terms n/30, FOB shipping point.
The appropriate company paid freight costs of $690 on the merchandise purchased on April 3.
Purchased supplies on account for $5,090.
Returned damaged merchandise to Ayayai received a credit of $3,700. The merchandise was returned to inventory
for future resale.
Paid the amount due to Ayayai in full.
1.
2.
3.
a
7
8
30
The cost of the merchandise sold on April 3 was $18,270. Ayayai expected a return rate of 15%.
The cost of the merchandise returned on April 8 was $2,300.
Ayayai uses a periodic inventory system.
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