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Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The...
Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. The company uses perpetual inventory system.
Refer to Table 1, the entry on Company E's books to record the purchased of merchandise inventory on Feb. 1 will include:
Debit to Cash for $9,700
Credit to Inventory for $9,500
Debit to Inventory for $9,700
Credit to Accounts Payable for $9,500
Debit to Inventory for $9,500
Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. The company uses perpetual inventory system.
Refer to Table 1, the entry on Company E's books to record the return of merchandise inventory on Feb. 2 will include:
Debit to Accounts Payable for $500.00
Credit to Cash for $500.00
Debit to Inventory for $500.00
Credit to Accounts Payable for $500.00
Debit to Purchase Returns for $500.00
Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F.
If the Company E uses periodic inventory system, the entry to record the purchase of inventory on Company E's books on Feb. 1 will include:
Debit to Accounts Payable for $9,500
Credit to Cash for $9,500
Debit to Purchases for $9,500
Credit to Inventory for $9,500
Debit to Inventory for $9,500
Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F.
If Company E uses periodic inventory system. The entry to record the return of inventory on Company E's books on Feb. 2 will include:
Debit to Inventory for $500.00
Debit to Accounts Payable for $500.00
Debit to Purchases for $500.00
Credit to Cash for $500.00
Credit to Accounts Payable for $500.00
Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Destination on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. Company E uses perpetual inventory system.
The entry to record the purchase of inventory from Company F will include:
Debit to Cash for $9,500.00
Credit to Inventory for $9,500.00
Credit to Accounts Payable for $9,700.00
Debit to Inventory for $9,500.00
Credit to Cash for $9,700.00
Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. The company uses perpetual inventory system.
The entry to record the return of inventory on Company E's books on Feb. 2 will include:
Debit to Cash for $500.00
Credit to Accounts Payable for $500.00
Debit to Inventory for $500.00
Credit to Accounts Receivable for $500.00
Debit to Accounts Payable for $500.00
