Unformatted text preview: FOB, shipping point. 2/10, n/30. With prepaid freight of $600 added to the invoice. We would debit merchandise Inventory for $21,900 and credit accounts Payable – Stafford Co. for $21,900. On April 6 th , the firm returned $6,000 of merchandise purchased on April 3 rd from Prescott Co. We would debit accounts payable for $6,000 and credit merchandise inventory for $6,000. On April 11 th the firm sold merchandise on account to Logan Co., list price of $8,500, trade discount 20%, term 1/10/ n/30. The cost of the merchandise sold was $4,500. We would debit the cost of merchandise sold for $4,500 and credit merchandise inventory for the same amount. We would also debit accounts payable for $,6800 and credit sales for $6,800. The remaining entries follow the same pattern. This is the end of Problem 6-5B....
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- Spring '11
- Generally Accepted Accounting Principles, merchandise, Stafford Co., Prescott Co