Scribd Logo
Upload

Welcome to Scribd!

  • Fulco Company Engaged in The Following Transactions in March 2014

    Uploaded by

    trilocksp Singh
    71 views1 page
    Fulco Company engaged in various sales and purchase transactions in March 2014. They sold merchandise on credit, purchased merchandise on credit from two suppliers, paid shipping charges, returned damaged goods, received payments from customers, sold goods for cash, and accepted a return from a customer. Journal entries need to be prepared to record these transactions assuming a perpetual inventory system. Cash rebates received from suppliers at year-end based on past purchases should not be reported as revenue, but rather applied to reduce inventory costs.

    Original Description:

    upload

    Original Title

    Fulco Company Engaged in the Following Transactions in March 2014

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Fulco Company engaged in various sales and purchase transactions in March 2014. They sold merchandise on credit, purchased merchandise on credit from two suppliers, paid shipping charges, returned damaged goods, received payments from customers, sold goods for cash, and accepted a return from a customer. Journal entries need to be prepared to record these transactions assuming a perpetual inventory system. Cash rebates received from suppliers at year-end based on past purchases should not be reported as revenue, but rather applied to reduce inventory costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    71 views1 page

    Fulco Company Engaged in The Following Transactions in March 2014

    Uploaded by

    trilocksp Singh
    Fulco Company engaged in various sales and purchase transactions in March 2014. They sold merchandise on credit, purchased merchandise on credit from two suppliers, paid shipping charges, returned damaged goods, received payments from customers, sold goods for cash, and accepted a return from a customer. Journal entries need to be prepared to record these transactions assuming a perpetual inventory system. Cash rebates received from suppliers at year-end based on past purchases should not be reported as revenue, but rather applied to reduce inventory costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Fulco Company engaged in the following transactions in

    March 2014
    Fulco Company engaged in the following transactions in March 2014:Mar. 7 Sold merchandise
    on credit to James William, terms n/30, FOB shipping point, $3,000 (cost, $1,800).8 Purchased
    merchandise on credit from Leverage Company, terms n/30, FOB shipping point, $6,000.9 Paid
    Leverage Company for shipping charges on merchandise purchased on March 8, $254.10
    Purchased merchandise on credit from Rourke Company, terms n/30, FOB shipping point,
    $9,600, including $600 freight costs paid by Rourke.14 Sold merchandise on credit to Deepak
    Soni, terms n/30, FOB shipping point, $2,400 (cost, $1,440).14 Returned damaged
    merchandise received from Leverage Company on March 8 for credit, $600.17 Received check
    from James William for his purchase of March 7.19 Sold merchandise for cash, $1,800 (cost,
    $1,080).20 Paid Rourke Company for purchase of March 10.21 Paid Leverage Company the
    balance from the transactions of March 8 and March 14.24 Accepted from Deepak Soni a return
    of merchandise, which was put back in inventory, $200 (cost, $120).Required1. Prepare journal
    entries to record the transactions, assuming use of the perpetual inventory system. (Hint: Refer
    to the TriLevel Problem feature.)2. Receiving cash rebates from suppliers based on the past
    year’s purchases is a common practice in some industries. If, at the end of the year, Fulco
    receives rebates in cash from a supplier, should these cash rebates be reported as revenue?
    Why or why not?View Solution:
    Fulco Company engaged in the following transactions in March 2014
    SOLUTION-- http://solutiondone.online/downloads/fulco-company-engaged-in-the-following-
    transactions-in-march-2014/

    Unlock answers here solutiondone.online


    Powered by TCPDF (www.tcpdf.org)

    You might also like