purchased goods from two suppliers. The sequence During the month of June, Ace I
ID: 2436634 • Letter: P
Question
purchased goods from two suppliers. The sequence During the month of June, Ace Incorporated of events was as follows June 3 Purchased goods for $6,100 from Diamond Inc. with terms 2/10, n/30. 5 Retuned goods costing $2,100 to Diamond Inc. for full credit 6 Purchased goods from Club Corp. for $2,000 with terms 2/10, n/30. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full Required 1. Prepare joumal entries to reoord the transactions, assuming Aoe uses a perpetual inventory system. (f no entry is required for a transactionlevent, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet Record the inventory purchased of $6,100 on account from Diamond Inc. with terms 2/10, n/30. Note: Enter debits before credits Date General Journal Debit Credit June 03 Record entry Clear entry View general journal 2. Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate MacBook AirExplanation / Answer
Answer
Date
Dr. $
Cr. $
3-Jun
Inventory
6,100
Accounts Payable (Diamond Inc.)
6,100
(Being goods purchased on credit)
5-Jun
Accounts Payable (Diamond Inc.)
2,100
Inventory
2,100
(Being goods returned)
6-Jun
Inventory
2,000
Accounts Payable (Club Corp.)
2,000
(Being goods purchased on credit)
11-Jun
Accounts Payable (Diamond Inc.)
4,000
Cash
3,920
Inventory ($4,000 * 2%)
80
(Being Creditors paid in full)
22-Jun
Accounts Payable (Club Corp.)
2,000
Cash
2,000
(Being Creditors paid in full)
Club Corp. will not get any discount, as it didn't paid in 10 days to receive the Discount.
2.
Cost of Inventory = Total Purchases – Returned Goods – Discount Received from Diamond
= ($6,100 + 2,000) – 2,100 – 80
Cost of Inventory = $5,920
Dear Student, if u have any doubt, plz feel free to reach me.
Date
Dr. $
Cr. $
3-Jun
Inventory
6,100
Accounts Payable (Diamond Inc.)
6,100
(Being goods purchased on credit)
5-Jun
Accounts Payable (Diamond Inc.)
2,100
Inventory
2,100
(Being goods returned)
6-Jun
Inventory
2,000
Accounts Payable (Club Corp.)
2,000
(Being goods purchased on credit)
11-Jun
Accounts Payable (Diamond Inc.)
4,000
Cash
3,920
Inventory ($4,000 * 2%)
80
(Being Creditors paid in full)
22-Jun
Accounts Payable (Club Corp.)
2,000
Cash
2,000
(Being Creditors paid in full)
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