20,000 terms 2/10, net/30, rd the merchandise coming out of inventory OMPANY 10,000 to make 10,000 10,000 sed from Suit. on account for $29,000 and was granted a $3,000 o Suit Company $1,500 entory ount for that. 3,000 3,000 1,500 1,500 Discounts to track the discounts being taken. 16,660 340
Tie Company's books - Periodic Inventory System April 5 - Tie Company purchased merchandise from Suit Company for $20 FOB shipping point. Purchases (A temporary account) 20,000 Accounts Payable Normal balance of purchases = Debt April 6 - Tie Company paid freight costs of $700 on merchandise purchas Freight - in or Transportation in (temporary account) Cash April 7 - Tie Company purchased equipment, to be used in the business, o Same as before April 8 - Tie Company returned damaged merchandise to Suit Company a credit for returned merchandise. Accounts payable Purchase return and allowance (temporary accounts) April 15 - Tie Company paid the amount due to Suit Company in full Account payable Purchase Discount (temporary account) Cash
20,000 terms 2/10, net/30, 20,000 sed from Suit. 700 700 on account for $29,000 and was granted a $3,000 3,000 3,000 17,000 340 16,660
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- Fall '18
- Mrs. Hess
- Balance Sheet, Generally Accepted Accounting Principles, Suit Company