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Listed Below Are Selected Examples of Transactions Related To The
Listed Below Are Selected Examples of Transactions Related To The
to the #8554
Listed below are selected examples of transactions related to the
Listed below are selected examples of transactions related to the purchase and sale of
merchandise inventory. Assume a perpetual inventory system is in use.
3. Payment of $250 cash for freight on purchase of inventory (FOB shipping point).
5. Payment of amount owed ($3,500) for purchase of inventory, terms 1/10, n/30, within
discount period. The $3,500 does not include the purchase discount. You will have to calculate
this amount.
6. Sale of inventory on account, terms n/30. Selling price $5,000; cost of sale $2,000.
8. Return of unwanted inventory from buyer for credit on account. Selling price $1,000; cost of
sale $400. Goods restored to inventory for future resale.
9. Return of damaged inventory from buyer for cash. Selling price $750; cost of sale $300.
Goods not resaleable are discarded. 10. Receipt of payment ($4,000) from customer on
account, terms n/30.
Instructions
For each of the above transactions, indicate: (a) the basic type (e.g., asset, liability, revenue,
expense) of each account to be debited and credited; (b) the specific name of the account(s) to
debit and credit (e.g., Merchandise Inventory); and (c) whether each account is increased (+) or
decreased (-) and by what amount. The first one has been done for you as an example.
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Listed below are selected examples of transactions related to the
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