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 $1,200 Cash $1,200 O Purchases $1,200 Cash $1,200 Inventory $1,200 Cash $1.200 O Cash $1,200 Freight-in $1.200

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 $1,200 Cash $1,200 O Purchases $1,200 Cash $1,200 Inventory $1,200 Cash $1.200 O Cash $1,200 Freight-in $1.200

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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