Alpha Company used the periodic inventory system for the purchase & sales of merchandise....


Alpha Company used the periodic inventory system for the purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n/30, and the gross method is used.

1. Alpha Company sold on account $2,500 of merchandise to Bravo Company on May 2, 2016. The selling price was $4,000. Freight charges related to this transaction $150 were paid by Alpha Company.

2. Bravo Company returned, to Alpha Company, $250 of this merchandise on May 3, 2016. Merchandise was sold for $400.

Use this information to make Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries.

Journal Entry:

The mandatory entries before preparing ledgers with proper debit and credit columns with dates are called journal entries. The journal is performed in every organization, which serves as the essential entry.

Answer and Explanation: 1

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Statement showing Journal Entries:

Date Particulars Debit Credit
May 2 Account Receivables$4,000
Sales $4,000
(To record the sales)
May 2 Cost...

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Learn more about this topic:

Calculating Beginning Inventory: Formula & Explanation


Chapter 1 / Lesson 7

Learn the definition of beginning inventory and understand how to calculate it. Find the beginning inventory formula and discover various examples of its usage.

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