Introduction to Inventories Practice Problems
The following transactions occurred between Companies C and D in June 2010:
June 10 Company C purchased merchandise from Company D for USD 80,000; terms 2/10/EOM, n/60, FOB destination, freight prepaid.
11 Company D paid freight of USD 1,200.
14 Company C received an allowance of USD 4,000 from the gross selling price because of damaged goods.
23 Company C returned USD 8,000 of goods purchased because they were not the quality ordered.
30 Company D received payment in full from Company C.
a. Journalize the transactions for Company C.
Source: Textbook Equity, https://learn.saylor.org/pluginfile.php/41219/mod_resource/content/3/AccountingPrinciples.pdf
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