Refer
to the data for Roley Corporation in BE13-1. Assuming that Roley instead uses
the net approach in accounting for its purchases, prepare all necessary journal
entries for Roley.
IN
BE On July 1, Roley purchased $60,000 of inventory, terms 2/10, n/30, f.o.b.
shipping point. Roley paid freight costs of $1,200. On July 3, Roley returned
damaged goods and received a credit of $6,000. On July 10, Roley paid for the
goods.
Prepare
all necessary journal entries for Roley.
|
07/01
|
Purchases ($60,000 X 98%).............
|
58,800
|
|
|
|
Accounts
Payable.................
|
|
58,800
|
|
|
|
|
|
|
|
Freight-in............................
|
1,200
|
|
|
|
Cash......................... Cash
|
|
1,200
|
|
|
|
|
|
|
07/03
|
Accounts Payable ($6,000 X 98%).......
|
5,880
|
|
|
|
Purchase
Returns and Allowances..
|
|
5,880
|
|
|
|
|
|
|
07/10
|
Accounts Payable ($54,000 X 98%)......
|
52,920
|
|
|
|
Cash.............................
|
|
52,920
|
