logistic_guy
Full Member
- Joined
- Apr 17, 2024
- Messages
- 318
here is the question
This information relates to Nandi Co.
1. On April \(\displaystyle 5\), purchased merchandise from Dion Company for \(\displaystyle \$25,000\), terms \(\displaystyle 2/10\), net\(\displaystyle /30\), FOB shipping point.
2. On April \(\displaystyle 6\), paid freight costs of \(\displaystyle \$900\) on merchandise purchased from Dion Company.
3. On April \(\displaystyle 7\), purchased equipment on account for \(\displaystyle \$30,000\).
4. On April \(\displaystyle 8\), returned some of April \(\displaystyle 5\) merchandise, which cost \(\displaystyle \$2,800\), to Dion Company.
5. On April \(\displaystyle 15\), paid the amount due to Dion Company in full.
(a) Prepare the journal entries to record these transactions on the books of Nandi Co. using a periodic inventory system.
(b) Assume that Nandi Co. paid the balance due to Dion Company on May \(\displaystyle 4\) instead of April \(\displaystyle 15\). Prepare the journal entry to record this payment.
myattemb
i understand in periodic inventory system the purchaser get the debit, so first entry
April \(\displaystyle 5\)
Purchases: \(\displaystyle \$25,000\) Debit
Account Payable: \(\displaystyle \$25,000\) Credit
on second entry, it don't say it paid cash or other method. if i assume cash, do cash go debit or credit? i'm already confused from second entry
do the idea of part (a) Nandi Co. pay early it get discount?
do the idea of part (b) Nandi Co. pay late so it pay more because the terms say last day April \(\displaystyle 30\)?
This information relates to Nandi Co.
1. On April \(\displaystyle 5\), purchased merchandise from Dion Company for \(\displaystyle \$25,000\), terms \(\displaystyle 2/10\), net\(\displaystyle /30\), FOB shipping point.
2. On April \(\displaystyle 6\), paid freight costs of \(\displaystyle \$900\) on merchandise purchased from Dion Company.
3. On April \(\displaystyle 7\), purchased equipment on account for \(\displaystyle \$30,000\).
4. On April \(\displaystyle 8\), returned some of April \(\displaystyle 5\) merchandise, which cost \(\displaystyle \$2,800\), to Dion Company.
5. On April \(\displaystyle 15\), paid the amount due to Dion Company in full.
(a) Prepare the journal entries to record these transactions on the books of Nandi Co. using a periodic inventory system.
(b) Assume that Nandi Co. paid the balance due to Dion Company on May \(\displaystyle 4\) instead of April \(\displaystyle 15\). Prepare the journal entry to record this payment.
myattemb
i understand in periodic inventory system the purchaser get the debit, so first entry
April \(\displaystyle 5\)
Purchases: \(\displaystyle \$25,000\) Debit
Account Payable: \(\displaystyle \$25,000\) Credit
on second entry, it don't say it paid cash or other method. if i assume cash, do cash go debit or credit? i'm already confused from second entry
do the idea of part (a) Nandi Co. pay early it get discount?
do the idea of part (b) Nandi Co. pay late so it pay more because the terms say last day April \(\displaystyle 30\)?