Chapter 6 Periodic, Perpetual, Inventory

Chapter 6 Periodic, Perpetual, Inventory - Perpetual...

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Jan. 3 rd : We buy $2,000 of dog food on account, 2/10, net 30 FOB Destination (freight cost $200 which is paid by the responsible party in cash) Jan. 5 th : We return $200 of the food because it was the wrong flavor Jan. 7 th : We pay in full Jan. 10 th : We purchase another $6,000 of dog food, all of which is the right flavor, 2/10, net 30, FOB Shipping Point (freight cost $150 which is paid by the responsible party in cash) Jan. 15 th : We pay in full Jan. 21 st : We buy yet another $3,000 of dog food, 1/10, net 30, FOB Shipping (freight cost $200 which is paid by the responsible party in cash) Jan. 23 rd : We return $100 of food because the bags were torn Feb. 6 th : We pay in full Prepare the journal entries to record the above transactions March 1: Tay purchases $10,000 of leashes from Macon on account w/ 2/15, net 30 terms. The leashes cost Macon $5,000. March 5: Tay returns half of the leashes b/c they are the wrong color but does not get more March 10: Tay pays Macon in full. March 12: Tay purchases $6,000 of collars from Macon w/ 1/10, net 30 terms.
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