On May 11, York Co. accepts delivery of $32,000 ofmerchandise it purchases for r
ID: 2434051 • Letter: O
Question
On May 11, York Co. accepts delivery of $32,000 ofmerchandise it purchases for resale from Troy Corporation. With themerchandise is an invoice dated May 11, with terms of 3/10, n/90, FOBshipping point. The goods cost Troy $21,440. When the goods aredelivered, York pays $545 to Express Shipping for delivery charges onthe merchandise. On May 12, York returns $2,180 of goods to Troy, whoreceives them one day later and restores them to inventory. The returnedgoods had cost Troy $1,461. On May 20, York mails a check to TroyCorporation for the amount owed. Troy receives it the following day.(Both York and Troy use a perpetual inventory system.) (Round your answers to the nearestdollar amount. Omit the "$" sign in your response.)
1. Prepare journal entries that York Co. records for these transactions.Explanation / Answer
2) May 11 AccountsReceivable 32,000 Sales 32,000 May 11 Cost of GoodSold 21,440 MerchandiseInventory 21,440 May 13 Sales Return and Allowance 2,180 AccountReceivable 2,180 May 13 MerchandiseInventory 1,461 Cost of GoodSold 1,461 May 21 AccountReceivable 29,820 Cash 28,925 SalesDiscount 895
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