The qestion is to prepare the journal entry using a perpetual inventory Prepare
ID: 2514768 • Letter: T
Question
The qestion is to prepare the journal entry using a perpetual inventory
Prepare journals entries for the following, assuming the company uses a perpetual inventory method and records purchases at their net amounts. Note: You can use T-accounts which help you to find the answers (from the balance of each account). Use gross amount approach.
June 1
Purchased merchandise from Harper Company for $1,000 with terms of 2/10, n/30
June 2
Returned $100 of the merchandise to the Harper Company.
June 6
Paid the amount owed to the Harper Company taking advantage of discount by cash. Use Purchases Discount Taken. Remember it is after the return of $100 merchandise.
June 12
Sold all of the merchandise on hand from the Harper Company for $1,200 cash. Two separate entries: one for sale and another for cost of good sold
Account
Debit
Credit
June 1
Purchased merchandise from Harper Company for $1,000 with terms of 2/10, n/30
June 2
Returned $100 of the merchandise to the Harper Company.
June 6
Paid the amount owed to the Harper Company taking advantage of discount by cash. Use Purchases Discount Taken. Remember it is after the return of $100 merchandise.
June 12
Sold all of the merchandise on hand from the Harper Company for $1,200 cash. Two separate entries: one for sale and another for cost of good sold
Explanation / Answer
date Accounts Title Dr Cr 1-Jun Mercandise Inventory $1,000 Accounts Payable $1,000 (being mercandise purchased on account) 2-Jun Accounts Payable $100 Mercandise Inventory $100 (being mercandise returned) 6-Jun Accounts Payable 900 Mercandise Inventory (900*2%) 18 Cash 882 (being payment made within the discount period) 12-Jun Cash $1,200 Sales $1,200 (being sales made for cash) Cost of good sold $882 Mercandise Inventory $882 If any doubt please comment
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