A) Prepare Separate Entries For Each Transaction On The Books Of Harris Company.?

1) On June 10, Harris Company purchased $8,300 of merchandise from Goetz Company, terms 2/10, n/30. Harris pays the freight costs of $440 on June 11. Goods totaling $300 are returned to Goetz for credit on June 12. On June 19, Harris Company pays Goetz Company in full, less the purchase discount. Both companies use a perpetual inventory system.
a) Prepare separate entries for each transaction on the books of Harris Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
b) Prepare separate entries for each transaction for Goetz Company. The merchandise purchased by Harris on June 10 cost Goetz $3,280, and the goods returned cost Goetz $280. (If no entry is required, select “No entry” for the account titles and enter 0 for the amounts.)

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One Response to “A) Prepare Separate Entries For Each Transaction On The Books Of Harris Company.?”

  1. JKRB says:

    a)
    On June 10, Harris Company purchased $8,300 of merchandise from Goetz Company, terms 2/10, n/30.
    Dr Merchandise Inventory 8,300
    Cr Accounts Payable 8,300
    Harris pays the freight costs of $440 on June 11.
    Dr Merchandise Inventory 440
    Cr Cash 440
    Goods totaling $300 are returned to Goetz for credit on June 12.
    Dr Accounts Payable 300
    Cr Merchandise Inventory 300
    On June 19, Harris Company pays Goetz Company in full, less the purchase discount. Both companies use a perpetual inventory system.
    (8,300 – 300) x 2% = 160 discount
    Dr Accounts Payable 8,000
    Cr Cash 7,840
    Cr Merchandise Inventory 160
    b)
    On June 10, Harris Company purchased $8,300 of merchandise from Goetz Company, terms 2/10, n/30. The merchandise purchased by Harris on June 10 cost Goetz $3,280.
    Dr Accounts Receivable 8,300
    Cr Sales 8,300
    Dr Cost of Goods Sold 3,280
    Cr Merchandise Inventory 3,280
    Harris pays the freight costs of $440 on June 11.
    No Entry
    Goods totaling $300 are returned to Goetz for credit on June 12. the goods returned cost Goetz $280
    Dr Sales Returns and Allowances 300
    Cr Accounts Receivable 300
    Dr Merchandise Inventory 280
    Cr Cost of Goods Sold 280
    On June 19, Harris Company pays Goetz Company in full, less the purchase discount. Both companies use a perpetual inventory system.
    Dr Cash 7,840
    Dr Sales Discounts 160
    Cr Accounts Receivable 8,000

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