On June 10, Paid Company purchased $9,000 of merchandise from McGiver Company, terms 3/10, n/30....
Question:
On June 10, Paid Company purchased $9,000 of merchandise from McGiver Company, terms 3/10, n/30. Paid Company pays the freight costs of $400 on June 11. Goods totalling $600 are returned to McGiver company for credit on June 12. One june 19, Paid Company pays McGiver Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Required
1. Prepare separate entries for each transaction on the books of Paid Company.
2. Prepare separate entries for each transaction for McGiver Company. The merchandise purchased by Pais Company on June 10 cost McGiver Company? $5,000, and the goods returned ost McGiver Company $310.
Inventory:
Inventory represents items available for sale or items in the process of being manufactured for sale. Items purchased into inventory from one firm are sold from the inventory of another firm.
Answer and Explanation: 1
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Journal entries are utilized to record the purchase and sale of merchandise of a company. Entries must balance with all debits equaling all credit....
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Accounting for Inventory Sales
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