Explore BrainMass
Share

Explore BrainMass

    Journal entry - Perpetual inventory system

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please see attached.

    Preparing a journal entry
    Accounts: Accounts Payable, Accounts Receivable, Cash, Cost of Goods Sold, Delivery Expense, Freight In, Merchandise Inventory, Purchase Discounts, Purchase Returns and Allowances, Purchases, Sales Discounts, Sales Returns and Allowances, Sales Revenue

    REQUIREMENTS:
    1. Journalize the purchase transactions. Explanations are not required.
    2. In the final analysis, how much did the inventory cost Bedford?

    Sept 2 Bedford buys $ 23,500 worth of inventory on account with credit terms of 1/15, n/30, FOB Shipping point
    Sept4 Bedford pays a $ 120 freight charge
    September 8 Bedford returns $ 5,500 of the merchandise due to damage during shipment
    September 14 Bedford paid the amount due, less return and discount

    © BrainMass Inc. brainmass.com October 10, 2019, 8:20 am ad1c9bdddf
    https://brainmass.com/business/finance/journal-entry-perpetual-inventory-system-619631

    Attachments

    Solution Summary

    Preparing a journal entry
    Accounts: Accounts Payable, Accounts Receivable, Cash, Cost of Goods Sold, Delivery Expense, Freight In, Merchandise Inventory, Purchase Discounts, Purchase Returns and Allowances, Purchases, Sales Discounts, Sales Returns and Allowances, Sales Revenue

    REQUIREMENTS:
    1. Journalize the purchase transactions. Explanations are not required.
    2. In the final analysis, how much did the inventory cost Bedford?

    Sept 2 Bedford buys $ 23,500 worth of inventory on account with credit terms of 1/15, n/30, FOB Shipping point
    Sept4 Bedford pays a $ 120 freight charge
    September 8 Bedford returns $ 5,500 of the merchandise due to damage during shipment
    September 14 Bedford paid the amount due, less return and discount

    $2.19