T-Mobile LTE 3:25 PM 98% Exam%202%20 Mock%20Test%20SP18.pdf s3.amazonaws.com Bus

Question

T-Mobile LTE 3:25 PM 98% Exam%202%20 Mock%20Test%20SP18.pdf s3.amazonaws.com Business 1A-Exam #2 Mock Exam Spring 2018 NAME PROBLEMS 1. Prepare journal entries to record the following merchandising transactions of Jolo Company, Inc., which applies the perpetual invento Dec 1 Dec 4 Dec 7 Dec 8 Dec 9 Dec 9 stem Purchased merchandise from Smith Company for $17,500 under credit terms of 3/10, n/30. Purchased merchandise from Low Company for $20,200 under credit terms 2/15, n/20. Paid $500 cash for the freight charges on the Dec 1 purchase of merchandise. Returned $10,000 of inventory to Smith Company from the merchandise purchased on Dec 1 Paid Low Company the balance due within the discount period Paid Smith Company the balance due within the discount period

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Dec 1 Merchandise inventory 17500 Account payable-smith company 17500 (To record purchase) Dec 4 Merchandise inventory 20200 Account payable-Low company 20200 (To record purchase) Dec 7 Merchandise inventory 500 Cash 500 (To record freight paid) Dec 8 Account payable-smith company 10000 Merchandise inventory 10000 (To record purchase return) Dec 9 Account payable-Low company 20200 Cash 19796 Merchandise inventory 404 (To record amount paid) Dec 9 Account payable-Smith company 7500 Cash 7275   Merchandise inventory 225 (To record amount paid)

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