B-05.03 Problem

B-05.03 Problem - use of a periodic inventory system and...

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B-05.03 Shirley Williams Apparel Store purchases clothing merchandise on account from various vendors. Below is an invoice from Terra Wear. Terra Wear Action Sport Clothing High Point, CO Bill to: INVOICE Shirley Williams Apparel Store # 3778 Denver Sports Center, #1234 Denver, CO DELIVERY DATE INVOICE DATE F.O.B. POINT TERMS May 5, 20X1 May 5, 20X1 Denver 1/10,n/30 QTY Description UNIT PRICE TOTAL 70 Work Out Wonder sport collection 125 $ 8,750 $ 30 Sun Fun - fun wear 35 1,050 $ 10 Fall Color collection 60 600 $ TOTAL 10,400 $ (a) Prepare Shirley's journal entries for each of the following transactions, assuming
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Unformatted text preview: use of a periodic inventory system and the "gross method" of recording: To record the invoice on May 5. To record the return of the Fall Color collection on May 7. To record the payment of the balance due if payment occurred on May 10. To record the payment of the balance due if payment occurred on May 20. (b) Repeat requirement (a) assuming Shirley' uses the periodic inventory system and the "net method" of recording....
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