7 problems Sheet1

Journailze the following transac4ons that occurred

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: nt on her payment and returned $10,000 of merchandise, claiming that it did not meet contract terms. Assuming that Reed uses the perpetual inventory method, record the necessary journal entries on June 24 and June 30. The cost of merchandise to Reed Company is 60% if its selling price. E 7 ­24 Perpetual Inventory Method Orser Furniture purchases and sells dining room furniture. Its management uses the perpetual method of inventory accoun4ng. Journailze the following transac4ons that occurred during October 2012. Oct 2 Purchased on account $27,000 of inventory with payment terms 2/10, n/30, and paid $650 in cash to have it shipped from the vendor's warehouse to the showroom. Oct 5 Sold inventory cos4ng $49,000 for $8,250. Oct 10 Paid $13,950 of accounts payable (from Oct 2 purchase) and received the cash discount. Oct 14 Returned two damaged tables purchased on Oct 2 (cos4ng $550 each) to the vendor. Oct 19 Received payment of $4,560 from customers. Oct 20 Paid the balance of the account from Oct 2 purchase. Oct 22 Sold inventory cos4ng $3,800 for $5,200 on account. Oct 24 A customer returned a dining room set that she decided didn't match her home. She paid $3,250 for it, and its cost to Orser was 41,800. Assuming the balane in the inventory account is $12,000 on October 1, and no other transac4ons rela4ng to inventory occurred during the month, what is the inventory balance at the end of October?...
View Full Document

Ask a homework question - tutors are online