Chapter 5 Lecture problems.xlsx - Tie Company's books Perpetual Inventory system April 5 purchased merchandise from Suit Company for $20,000 terms 2\/10

Chapter 5 Lecture problems.xlsx - Tie Company's books...

This preview shows page 1 - 4 out of 14 pages.

Tie Company's books - Perpetual Inventor April 5 - purchased merchandise from Suit Com FOB shipping point. Inventry (B/S- asset) Accounts payable (B/S - liabilit Do we have to do anything with the 2/10, net/20 If we plan to take the discount, when must paym Who pays the freight when something is shipped April 6 - paid freight costs of $700 on merchand Inventory (B/S - asset) Cash April 7 - purchased equipment, to be used in th Is this a purchase of inventory? If not, what is it? How do we know that? Equipment (B/S- asset) Accounts payable (B/S - Liabili April 8 - returned damaged merchandise to Sui credit for returned merchandise. Accounts Payable (B/S - liabilit Inventory (B/S- assets) April 15 - paid the amount due to Suit Company How much do we owe? 17,000 Are we going to pay them $17,000 in cash?
Image of page 1
If not, how much cash do we owe them? Account Payable Cash Inventory (B/S-assets) What if we paid the balance due to Suit Compan Accounts Payable Cash
Image of page 2
ry system mpany for $20,000 terms 2/10, net/30, 20,000 tie) 0 yet?
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 14 pages?

  • Fall '18
  • Mrs. Hess
  • Balance Sheet, Generally Accepted Accounting Principles, Suit Company

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes