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*E5-17 Presented below and on page 231 is information related to Chevalier Co.

Price: $1.99


*E5-17 Presented below and on page 231 is information related to Chevalier Co.

1. On April 5, purchased merchandise from Paris Company for $22,000, terms 2/10, net/30,
FOB shipping point.

2. On April 6, paid freight costs of $800 on merchandise purchased from Paris.

3. On April 7, purchased equipment on account from Wayne Higley Mfg. Co. for $26,000.

4. On April 8, returned damaged merchandise to Paris Company and was granted a $4,000
allowance.

5. On April 15, paid the amount due to Paris Company in full.

Instructions

(a) Prepare the journal entries to record these transactions on the books of Chevalier Co. using
a periodic inventory system.
(b) Assume that Chevalier Co. paid the balance due to Paris Company on May 4 instead of
April 15. Prepare the journal entry to record this payment.

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