I-05.01 Problem

I-05.01 Problem - Freight charges of $460 were prepaid by...

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I-05.01 Tic Toc Clock Shop reported the following merchandising-related transactions during June. Tic Tock Clock Shop records all purchases "gross" and credit terms are precisely followed on both purchases and sales. Prepare journal entries to record each transaction. 3-Jun Purchased $4,000 of clocks on account from Swiss Time, F.O.B. destination, terms 1/10, n/30. 5-Jun Sold a $1,500 clock to Janci Holgren on account, terms 2/10, n/eom. The customer picked up the clock from the shop. 9-Jun Paid the amount due for the purchase of June 3. 11-Jun Purchased $8,000 of clocks on account from Melbourne Clockworks, F.O.B. shipping point, terms 2/10, n/30.
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Unformatted text preview: Freight charges of $460 were prepaid by Melbourne and added to the invoice. No discount is permitted on the freight charges. 19-Jun Sold a $3,500 clock on account, terms 2/10, n/eom. Tic Toc sold the clock F.O.B. destination, and paid the freight charges of $330. 23-Jun The customer of June 19 called to report that the clock was received damaged. An agreement was reached to reduce the invoice by 20%. 27-Jun Paid Melbourne Clockworks for the purchase of June 11. 27-Jun Janci Holgren paid for the purchase of June 5. 28-Jun The customer of June 19 paid the balance due....
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