Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, 2 purchased $60,000 inventory, terms 2/10, n/30 FOB shipping point Zorzi paid freight costs of $1,200. On July 3, Zorzi returned damaged goods and received a credit of $6.000. On July 10 Zorzi paid for the goods. Prepare the Journal Entries for the Return of Damaged Goods O Cash $6.000 Purchases Returns & Allowance $6.000 O Accounts Payable S6.000 Purchases Returns & Allowance S6 000 O Cash $6.000 Inventory O Purchases Returns & Allowance $6.000 $6.000 Cash $6.000

Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, 2 purchased $60,000 inventory, terms 2/10, n/30 FOB shipping point Zorzi paid freight costs of $1,200. On July 3, Zorzi returned damaged goods and received a credit of $6.000. On July 10 Zorzi paid for the goods. Prepare the Journal Entries for the Return of Damaged Goods O Cash $6.000 Purchases Returns & Allowance $6.000 O Accounts Payable S6.000 Purchases Returns & Allowance S6 000 O Cash $6.000 Inventory O Purchases Returns & Allowance $6.000 $6.000 Cash $6.000

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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Zorzi Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts On July 1, Zorzi purchased $60,000 inventory, terms 2/10, n/30 FOB shipping point Zorzi paid freight costs of $1,200 On July 3, Zorzi returned damaged goods and received a credit of $6,000. On July 10 Zorzi paid for the goods. Prepare the Journal Entries for the Freight Costs O Freight-in Cash $1,200 S1,200 O Purchases $1,200 Cash S1,200 O Inventory $1,200 Cash $1 200 Cash $1.200 Freight-in $1.200
On June 10, Blue Spruce Company purchased $8,400 of merchandise on account from Ayayai Company, FOB shipping point, terms 3/10, n/30. Blue Spruce pays the freight costs of $460 on June 11. Goods totaling $700 are returned to Ayayai for credit on June 12. On June 19, Blue Spruce pays Ayayai Company in full, less the discount. Both companies use a perpetual inventory system.
HOW DO I PREPARE A TRANSACTION CHART? On June 10, Wildhorse Company purchased $9,500 of merchandise on account from Novak Company, FOB shipping point, terms 2/10, n/30. Wildhorse pays the freight costs of $590 on June 11. Damaged goods totaling $350 are returned to Novak for credit on June 12. The fair value of these goods is $75. On June 19, Wildhorse pays Novak Company in full, less the purchase discount. Both companies use a perpetual inventory system.
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Prepare the journal entries to record the following purchase transactions in Blossom Company’s books. Blossom uses a perpetual inventory system. Mar. 12 Blossom purchased $23,000 of merchandise from Dalibor Company, terms 2/10, n/30, FOB destination. 13 The correct company paid freight costs of $175. 14 Blossom returned $2,700 of the merchandise purchased on March 12 because it was damaged. 21 Blossom paid the balance owing to Dalibor.
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Information related to Splish Brothers Inc. is presented below. rch On April 5, purchased merchandise on account from Sheffield Company for $26,400, terms 4/10, net/30, FOB shipping point. On April 6, paid freight costs of $930 on merchandise purchased from Sheffield. On April 7, purchased equipment on account for $41,900. On April 8, returned damaged merchandise to Sheffield Company and was granted a $4,100 credit for returned merchandise. 5. On April 15, paid the amount due to Sheffield Company in full. 1. 2. 3. 4. Prepare the journal entries to record these transactions on the books of Splish Brothers Inc. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. 1. 2. Date Account Titles and Explanation norcal_archives_20....zip O i Ei W QCA 5.docx C ((( W response essay.docx Debit < 76°F_^ Credit
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