Journal entries for Gilberto Co.
Not what you're looking for?
Information related to Gilberto Co. is presented below.
1. On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30,
FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Allman.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Allman Company and was granted a $4,000
allowance for returned merchandise.
5. On April 15, paid the amount due to Allman Company in full.
Instructions
(a) Prepare the journal entries to record these transactions on the books of Gilberto Co. under
a perpetual inventory system.
(b) Assume that Gilberto Co. paid the balance due to Allman Company on May 4 instead of
April 15. Prepare the journal entry to record this payment.
Purchase this Solution
Solution Summary
The solution examines journal entries for Gilberto Co.
Solution Preview
a)
April 5 DR Merchandise Inventory $20,000
CR Accounts payable $20,000
(Being merchandise purchased from Allman Co on credit)
April 6 DR Merchandise inventory $900
CR Cash ...
Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.