Eight Company reported 1,500 units of inventory at a total cost of $15,000 as of November 1, 2018. The following transactions occurred during the month.
November 14: The company purchased 2,000 units of merchandise on account for $22,000 with terms 2/10, n30. The goods were shipped f.o.b. destination and arrived at the company's warehouse on November 18. The company paid $500 cash to a third party carrier for freight.
November 18: The company received the inventory purchased on November 14.
November 19: The company returned 300 units of merchandise purchased on November 14 for credit.
November 20: The company sold 1,400 units of merchandise on account for $28,000 with terms 2/10, n30. The goods shipped f.o.b. shipping point and arrived at the customer's warehouse on November 24.
November 22: The company paid for the merchandise purchased on November 14.
November 24: The customer confirmed receipt of the merchandise shipped on November 20.
Assume that Eight Company uses the periodic method and last-in, first-out (LIFO) cost flow assumption to account for inventory, the gross method to account for purchase discounts, and the gross method to account for sales discounts.
The journal entry on November 19 would include which of the following?
A debit to accounts payable for $3,324
A debit to accounts payable for $3,300
A credit to inventory for $3,300
A credit to purchases for $3,300
Eight Company reported 1,500 units of inventory at a total cost of $15,000 as of November 1, 2018. The following transactions occurred during the month.
November 14: The company purchased 2,000 units of merchandise on account for $22,000 with terms 2/10, n30. The goods were shipped f.o.b. destination and arrived at the company's warehouse on November 18. The company paid $500 cash to a third party carrier for freight.
November 18: The company received the inventory purchased on November 14.
November 19: The company returned 300 units of merchandise purchased on November 14 for credit.
November 20: The company sold 1,400 units of merchandise on account for $28,000 with terms 2/10, n30. The goods shipped f.o.b. shipping point and arrived at the customer's warehouse on November 24.
November 22: The company paid for the merchandise purchased on November 14.
November 24: The customer confirmed receipt of the merchandise shipped on November 20.
Assume that Eight Company uses the periodic method and last-in, first-out (LIFO) cost flow assumption to account for inventory, the gross method to account for purchase discounts, and the gross method to account for sales discounts.
The journal entry on November 19 would include which of the following?
| A debit to accounts payable for $3,324 |
| A debit to accounts payable for $3,300 |
| A credit to inventory for $3,300 |
| A credit to purchases for $3,300 |
Related questions
| Nov. | 3 | Instructions: Journalize the transactions below (credit and debit) Purchased merchandise on account from Moonlight Co., list price $90,000, trade discount Discounts from the list prices in published catalogs or special discounts offered to certain classes of buyers. 25%, terms FOB destinationFreight terms in which the seller pays the transportation costs from the shipping point to the final destination. , 2/10, n/30. |
| 4 | Sold merchandise for cash, $36,900. The cost of the goods sold The cost that is reported as an expense when merchandise is sold. was $20,480. | |
| 5 | Purchased merchandise on account from Papoose Creek Co., $50,700, terms FOB shipping point Freight terms in which the buyer pays the transportation costs from the shipping point to the final destination. , 2/10, n/30, with prepaid freight of $750 added to the invoiceThe bill that the seller sends to the buyer. . | |
| 6 | Returned $12,750 ($17,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. | |
| 8 | Sold merchandise on account to Quinn Co., $14,550 with terms n/15. The cost of the goods sold was $9,510. | |
| 13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
| 14 | Sold merchandise on VISA, $239,110. The cost of the goods sold was $137,270. | |
| 15 | Paid Papoose Creek Co. on account for purchase of November 5. | |
| 23 | Received cash on account from sale of November 8 to Quinn Co. | |
| 24 | Sold merchandise on account to Rabel Co., $57,100, terms 1/10, n/30. The cost of the goods sold was $32,270. | |
| 28 | Paid VISA service fee of $3,700. | |
| 30 | Paid Quinn Co. a cash refund of $5,960 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,290. |
Please fill out the table below with the given information.
The following were selected from among the transactionscompleted by Babcock Company during November of the currentyear:
Nov. | 3 | Purchased merchandise on account from Moonlight Co., list price$85,000, trade discount 25%, terms FOB destination, 2/10, n/30. |
|---|---|---|
4 | Sold merchandise for cash, $37,680. The cost of the merchandisesold was $22,600. | |
5 | Purchased merchandise on account from Papoose Creek Co.,$47,500, terms FOB shipping point, 2/10, n/30, with prepaid freightof $810 added to the invoice. | |
6 | Returned $13,500 ($18,000 list price less trade discount of 25%)of merchandise purchased on November 3 from Moonlight Co. | |
8 | Sold merchandise on account to Quinn Co., $15,600 with termsn/15. The cost of the merchandise sold was $9,400. | |
13 | Paid Moonlight Co. on account for purchase of November 3, lessreturn of November 6. | |
14 | Sold merchandise on VISA, $236,000. The cost of the merchandisesold was $140,000. | |
15 | Paid Papoose Creek Co. on account for purchase of November5. | |
23 | Received cash on account from sale of November 8 to QuinnCo. | |
24 | Sold merchandise on account to Rabel Co., $56,900, terms 1/10,n/30. The cost of the merchandise sold was $34,000. | |
28 | Paid VISA service fee of $3,540. | |
30 | Paid Quinn Co. a cash refund of $6,000 for returned merchandisefrom sale of November 8. The cost of the returned merchandise was$3,300. |
Journalize the transactions. Refer to the Chart of Accountsfor exact wording of account titles.
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journalize the transactions. Refer to the Chart of Accountsfor exact wording of account titles.
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