DUE ASAP POINTS IMMEDIATLY On June 10, Harris Company purchased $7,000 of mercha

Question

DUE ASAP POINTS IMMEDIATLY

On June 10, Harris Company purchased $7,000 of merchandise from Goetz Company, terms 4/10, n/30. Harris pays the freight costs of $450 on June 11. Goods totaling $600 are returned to Goetz for credit on June 12. On June 19, Harris Company pays Goetz Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Harris Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare separate entries for each transaction for Goetz Company. The merchandise purchased by Harris on June 10 cost Goetz $2,440, and the goods returned cost Goetz $220. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

IN THE BOOKS OF HARRIS:-

JOURNAL ENTERIES:-

JUNE-10

DEBIT INVENTORY = 7000

CREDIT ACCOUNTS PAYABLE = 7000

JUNE-11

DEBIT INVENTORY = 450

CREDIT CASH = 450

JUNE-12

DEBIT ACCOUNTS PAYABLE = 600

CREDIT INVENTORY = 600

JUNE-19

DEBIT ACCOUNTS PAYABLE[7000-600] = 6400

CREDIT INVENTORY [(7000-600)*4%] = 256

CREDIT CASH [6400-256] = 6144

IN THE BOOKS OF GOETZ:-

JOURNAL ENTERIES:-

JUNE-10

DEBIT ACCOUNTS RECIEVABLE = 7000

CREDIT SALES = 7000

DEBIT COST OF GOODS SOLD = 2440

CREDIT INVENTORY = 2440

JUNE-11

DEBIT SALES = 600

CREDIT ACCOUNTS RECIEVABLE = 600

DEBIT INVENTORY = 220

CREDIT COST OF GOODS SOLD = 220

JUNE-19

DEBIT CASH [6400-256] = 6144

DEBIT INVENTORY [(7000-600)*4%] = 256

CREDIT ACCOUNTS RECIEVABLE[7000-600] = 6400

IN THE BOOKS OF HARRIS:-

JOURNAL ENTERIES:-

JUNE-10

DEBIT INVENTORY = 7000

CREDIT ACCOUNTS PAYABLE = 7000

JUNE-11

DEBIT INVENTORY = 450

CREDIT CASH = 450

JUNE-12

DEBIT ACCOUNTS PAYABLE = 600

CREDIT INVENTORY = 600

JUNE-19

DEBIT ACCOUNTS PAYABLE[7000-600] = 6400

CREDIT INVENTORY [(7000-600)*4%] = 256

CREDIT CASH [6400-256] = 6144

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