The Bixby Co. had the following transactions involving the purchase of merchandi
ID: 2468333 • Letter: T
Question
The Bixby Co. had the following transactions involving the purchase of merchandise. Prepare the necessary general journal entries. Any applicable freight costs are prepaid by the seller. The perpetual inventory method is in use. June 16 Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 10, n/30. Transportation terms F.O.B destination. June 16 Purchased merchandise having a price of $9,000 from the Ajax Supply House on account with credit terms 2/10, n/30. Transportation terms F.O.B shipping point. The freight costs were $175. June 17 Received the goods from Shelby. June 17 Received the goods from Ajax. June 20 Returned for credit merchandise with an invoice price of $800 to Ajax. June 25 Paid Shelby the amount owed. June 28 Paid Ajax the amount owed. June 30 Returned for cash, merchandise with an invoice price of $400 to Shelby. Prepare the necessary general journal entry for June 16, Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 2/10, n/30. Transportation terms F.O.B destination. _____________________________________ __________ __________ _____________________________________ __________ __________ _____________________________________ __________ __________ Prepare the necessary general journal entry for June 17, Received the goods from Shelby. _____________________________________ __________ __________ _____________________________________ __________ __________ _____________________________________ __________ __________ PRINCIPLES OF ACCOUNTING 1 51 Prepare the necessary general journal entry for June 25. _____________________________________ __________ __________ _____________________________________ __________ __________ _____________________________________ __________ __________ Prepare the necessary general journal entry for June 28. _____________________________________ __________ __________ _____________________________________ __________ __________ _____________________________________ __________ __________
Explanation / Answer
The Bixby Co.
General Journal
Credit terms to Shelby- 10,n/30 not clear.
Date Account Titles Debit Credit $ $ June 17 Merchandise inventory 6,000 Accounts payable-Shelby 6,000 June 17 No entry required, as it is FOB shipping point purchase June 25 Accounts Payable-Shelby 6,000 Cash 6,000 June 28 Accounts payable-Ajax 8,036 Purchase discount lost 164 Cash 8,200Related Questions
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