Chapter_5_Pages_178_to_185

Chapter_5_Pages_178_to_185 - Chapter 5 - LO 4 - Applying...

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(A) (L) + Merchandise Inventory -- -- Accounts Payable + (assumed) b.b. 0 b.b. 0 (assumed) Oct. 3 4,890 4,890 Oct. 3 r.b. 4,890 r.b. 4,890 On Oct. 3, Fenwick Fashions Co. received merchandise purchased on credit from Neebok Co., invoice dated Oct Buyer Seller contra-OE (Part of COGS) (L) + Freight In -- -- Accounts Payable + b.b. 0 b.b. 0 160 Oct. 4 4,890 Oct. 3 160 Oct. 4 r.b. 160 r.b. 5,050 See the asterix on p. 175 (Exhibit 2). Freight In (part of COGS) is different from Freight Out (shipping expense). On Oct. 4, Fenwick received a bill from Transfer Freight Co. for transportation costs on the Oct. 3 shipment, invoi (A) (L) + Merchandise Inventory -- -- Accounts Payable + b.b. 0 b.b. 0 Oct. 3 4,890 4,890 Oct. 3 480 Oct. 6 Oct. 6 480 r.b. 4,410 r.b. 4,410 On Oct. 6, Fenwick returned merchandise received from Neebok for credit, $480. not for cash; will reduce the AP Chapter 5 - LO 4 - Applying the Perpetual Invent Purchases of merchandise - Buyer 's side (Fenwick Fashions Co.)
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(A) (L) + Cash -- -- Accounts Payable
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Chapter_5_Pages_178_to_185 - Chapter 5 - LO 4 - Applying...

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