Accounting Ch 8 Journal Entries
On October 31, James paid for the merchandise purchased on October 12. PERIODIC SYSTEM
(D) AP 21,560 (D) Interest Expense 440 (C) Cash 22,000
On October 31, James paid for the merchandise purchased on October 12. PERPETUAL SYSTEM
(D) AP 21,560 (D) Interest Expense 440 (C) Cash 22,000
On October 18 the company returned merchandise costing $3,000. The return reduced the amount owed to the supplier. The merchandise returned came from beginning inventory, not from the October 12 purchase. PERPETUAL SYSTEM
(D) AP 3,000 (C) Inventory 3,000
On October 18 the company returned merchandise costing $3,000. The return reduced the amount owed to the supplier. The merchandise returned came from beginning inventory, not from the October 12 purchase. PERIODIC SYSTEM
(D) AP 3,000 (C) Purchase Returns 3,000
During October merchandise costing $18,000 was sold on account for $28,000. PERIODIC SYSTEM
(D) AR 18,000 (C) Sales Revenue 18,000
During October merchandise costing $18,000 was sold on account for $28,000. PERPETUAL SYSTEM
(D) AR 28,000 (C) Sales Revenue 28,000
It was determined that inventory on hand at the end of October cost $16,060. (Record COGS) PERPETUAL SYSTEM
(D) COGS 18,000 (C) Inventory 18,000
Adjusting entry at the end of October to record cost of goods sold. (Beginning Inventory= 15,000) PERIODIC SYSTEM
(D) COGS 18,000 (D) Inventory 16,060 (D) Purchase Returns 3,000 (C) Inventory 15,000 (C) Purchases 21,560 (C) Freight-In 500
The company purchased merchandise on account for $22,000 on October 12, 2013. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. PERPETUAL SYSTEM
(D) Inventory 21,560 (C) AP 21,560 (D) Inventory 500 (C) Cash 500
The company purchased merchandise on account for $22,000 on October 12, 2013. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. PERIODIC SYSTEM
(D) Purchases 21,560 (C) AP 21,560 (D) Freight-in 500 (C) Cash 500
It was determined that inventory on hand at the end of October cost $16,060. Record the cost of goods sold. PERIODIC SYSTEM
NO ENTRY REQUIRED
