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05 - Class Exercises - inventory system 1 On June 10...

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ACC211 NVCC - Annandale Mitchell Chapter 5 - Class Exercises (c) On March 12, Monroe Company received the balance due from Churchill Company. (a) On March 2, Monroe Company sold $900,000 of merchandise to Churchill Company, terms 2/10, n/30. The cost of the merchandise sold was $620,000. (b) On March 6, Churchill Company returned $120,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $90,000. 3) From the information in number 2, prepare the journal entries to record these transactions on Churchill Company's books under a perpetual inventory system. 2) Prepare the journal entries to record the following transactions on Monroe Company's books using a perpetual
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Unformatted text preview: inventory system. 1) On June 10, Bulldawg Company purchased $8,000 of merchandise from Harry Company, FOB shipping point, terms 2/10, n/30. Bulldawg pays the freight costs of $400 on June 11. Goods totaling $300 are returned to Harry for credit on June 12. The cost of these goods is $150. On June 19, Bulldawg pays Harry Company in full, less the purchase discount. Both companies use a perpetual inventory system. a. Prepare separate entries for each transaction on the books of Bulldawg Company. b. Prepare separate entries for each transaction for Harry Company. The merchandise purchased by Bulldawg on June 10 had cost Harry $5,000....
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