1.Purchase inventory that cost 2,200 on account from Blue Company under terms 1/10, n/30. The merchandise was deliver FOB shipping…
1.Purchase inventory that cost 2,200 on account from Blue Company under terms 1/10, n/30. The merchandise was deliver FOB shipping point. Freight costs of 110 were paid in cash.2. Returned 200 of the inventory that it had purchased because the inventory was damaged. The freight people agreed to pay the return freight cost.3. Paid the amount due on its account payable to Blue Company within the cash discount period.4. Sold inventory that had cost 3,000 for 5,000 on account, under terms 2/10, n/45.5. Received merchandise returned from a customer. The merchandise originally cost 400 and was sold to the customer for 710 cash during the previous accounting period. The customer was paid $710 cash for the returned merchandise.6. Delivered goods FOB destination in Event 4. Freight costs of $60 were paid in cash.7.Collect the amount due on the account receivable within the discount period. 8.Took a physical count indicating that $7,970 of inventory was on hand at the end of the accounting period.
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