Kitchen Electrics uses a perpetual inventory system. The following are three recent merchandising transactions. Apr....
60.1K
Verified Solution
Link Copied!
Question
Accounting
Kitchen Electrics uses a perpetual inventory system. The following are three recent merchandising transactions. Apr. 10 Purchased 10 refrigerators from Polar Co. on account. Invoice price, $600 per unit, for a total of $6,000. The terms of purchase were 2/10, n/30. Apr. 15 Sold one of these refrigerators for $900 cash. Apr. 20 Paid the account payable to Polar Co. within the discount period. 1 Instructions a. Prepare journal entries to record these transactions assuming that Kitchen Electrics records purchases of merchandise at: 1. Net cost 2. Gross invoice price b. Assume that Kitchen Electrics did not pay Polar Co. within the discount period but instead paid the full invoice price on May 10 . Prepare journal entries to record this payment assuming that the original liability had been recorded at 1. Net cost 2. Gross invoice price
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
