The following transactions were completed by Niles Co. during March of the current year: March...
Question:
The following transactions were completed by Niles Co. during March of the current year:
March 1: Purchased merchandise from Haas Co., $43,250, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $650 was added to the invoice.
March 5: Purchased merchandise from Whitman Co., $19,175, terms FOB destination, n/30.
March 10: Paid Haas Co. for invoice of March 1.
March 13: Purchased merchandise from Jost Co., $15,550, terms FOB destination, 2/10, n/30.
March 14: Issued debit memo to Jost Co. for $3,750 of merchandise returned from purchase on March 13.
March 18: Purchased merchandise from Fairhurst Company, $13,560, terms FOB shipping point, n/eom.
March 18: Paid freight of $140 on March 18 purchase from Fairhurst Company.
March 19: Purchased merchandise from Bickle Co., $6,500, terms FOB destination, 2/10, n/30.
March 23: Paid Jost Co. for invoice of March 13, less debit memo of March 14.
March 29: Paid Bickle Co. for invoice of March 19.
March 31: Paid Fairhurst Company for invoice of March 18.
March 31: Paid Whitman Co. for invoice of March 5.
Required:
Journalize the entries to record the transactions of Niles Co. for March.
Accounting:
A company's records are maintained by an accountant as they occur. Most transactions are maintained through an automated system. Entries or journal entries record balanced transactions between the balance sheet and profit and loss statement.
Recording Purchases under Inventory Management System:
- The inventory management systems are of two types: the perpetual inventory and the periodic inventory. Recording of purchases differs under both methods.
- Periodic inventory uses a separate account known as 'Purchases' to record all inventory inflows.
- Perpetual inventory records purchases in the inventory account directly and all movements of inventory are recorded on a real-time basis.
Answer and Explanation: 1
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View this answerJournal Entries are a daily part of accounting. Journal Entries record transactions or activities that occur for a business. Debits must always equal...
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