E5-18 The following information relates to Martinez Co. 1. On April 5 purchased merchandise from D. Norlan Company for $20,000, terms 2/10, net/30, and FOB shipping point. 2. On April 6 paid freight costs of $900 on merchandise purchased from D. Norlan Company. 3. On April 7 purchased equipment on account for $26,000. 4. On April 8 returned some of April 5 merchandise, which cost $2,800, to D. Norlan Company. 5. On April 15 paid the amount due to D. Norlan Company in full. Instructions (a) Prepare the journal entries to record these transactions on the books of Martinez Co. using a periodic inventory system. (b) Assume that Martinez Co. paid the balance due to D. Norlan Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
E5-18 The following information relates to Martinez Co. 1. On April 5 purchased merchandise from D. Norlan Company for $20,000, terms 2/10, net/30, and FOB shipping point. 2. On April 6 paid freight costs of $900 on merchandise purchased from D. Norlan Company. 3. On April 7 purchased equipment on account for $26,000. 4. On April 8 returned some of April 5 merchandise, which cost $2,800, to D. Norlan Company. 5. On April 15 paid the amount due to D. Norlan Company in full. Instructions (a) Prepare the journal entries to record these transactions on the books of Martinez Co. using a periodic inventory system. (b) Assume that Martinez Co. paid the balance due to D. Norlan Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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