Practice Examination
Combined Chapters 1-4
Dr. Fred Barbee
Solution to Short-Problem #1
|
ACCT 201 Principles of Financial Accounting Practice Examination Combined Chapters 1-4 Dr. Fred Barbee Solution to Short-Problem #1 |
|
Short Problem #1
| Weston Enterprises uses a periodic inventory system. Prepare general journal entries to record the following transactions. |
| a. | (June 10) Weston purchased merchandise on credit from Easton for $9,000, terms 2/10, n/30, FOB destination. Transportation costs of $350 were paid by Easton. |
| b. | (June 12)Weston returned $600 of merchandise from the June 10 purchase. |
| c. | (June 19)Weston paid Easton for the June 10 purchase. |
Solution
| Purchases | 9,000 |
|
| Accounts Payable | 9,000 |
| Accounts Payable | 600 |
|
| Purchases Returns and Allowances | 600 |
| Accounts Payable | 8,400 |
|
| Cash | 8,232 |
|
| Purchases Discounts ($8,400 x .02) | 168 |