1.179 Leo Corporation uses the perpetual inventory system and began business on April 1. During the month Leo made inventory purchases of $84,700 on terms of 2/10, n/30. Leo returned $3,500 worth of goods during the month. Leo made all payments in time to take advantage of the offered cash discounts during the month. Leo sold inventory on account with a value of $71,350 and a markup of 30% on the cost. These were the only inventory transactions during the month. Prepare the journal entries related to: the purchase of goods. the return of goods. payment for the goods. sale of goods.
1.179 Leo Corporation uses the perpetual inventory system and began business on April 1. During the month Leo made inventory purchases of $84,700 on terms of 2/10, n/30. Leo returned $3,500 worth of goods during the month. Leo made all payments in time to take advantage of the offered cash discounts during the month. Leo sold inventory on account with a value of $71,350 and a markup of 30% on the cost. These were the only inventory transactions during the month. Prepare the journal entries related to: the purchase of goods. the return of goods. payment for the goods. sale of goods.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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1.179 Leo Corporation uses the perpetual inventory system and began business on April 1. During the month Leo made inventory purchases of $84,700 on terms of 2/10, n/30. Leo returned $3,500 worth of goods during the month. Leo made all payments in time to take advantage of the offered cash discounts during the month. Leo sold inventory on account with a value of $71,350 and a markup of 30% on the cost. These were the only inventory transactions during the month. Prepare the
- the purchase of goods.
- the return of goods.
- payment for the goods.
- sale of goods.
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