journal entry
Recording Purchases
Compass Inc. purchased 1,250 bags of insulation from Glassco Corp. The bags of insulation cost $5.50 each. Compass paid Tremblay Trucking $320 to have the bags of insulation shipped to its warehouse. Compass returned 50 bags that were defective and paid for the remainder. Assume that Compass uses the perpetual inventory system and that Glassco did not offer a purchase discount. (Note: You are doing the accounting for Compass Inc.)
Required:
1. Prepare the
2. Prepare the entry to record the payment for shipping.
3. Prepare the entry for the return of the defective bags.
4. Prepare the entry to record the payment for the bags kept by Compass.
5. What is the total cost of this purchase?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
