Problem 1: Record the Journal Entry or Entries for thefollowing transactions assuming a perpetual inventory system isused.
1. XYZ Corp. is a retailer and they purchase 10,000 books for$25,000 dollars on account from ABC Corp.
2. Assume the terms of the sale described in #1 are FOB shippingpoint, XYZ Corp. pays Just-In-Time Logistics $2,200 forshipping.
3. XYZ Corp. purchases 3,600 calculators for $130,000 dollarsfrom ABC Corp. under the terms 2/10, n/30 on March 1, 20X5. OnMarch 8, 20X5 XYZ Corp. paid ABC Corp. in full.
4. XYZ Corp. purchases 300 keyboards from ABC Corp. for $24,000on account on October 5, 20X4. On October 17, 20X4 XYZ Corp.discovered that $800 of the calculators (from the purchase in #3)were defective and returned them to ABC Corp.
5. XYZ Corp. sells 500 pencil cases to ABC Corp. at a sellingprice of $12, the cases had an original cost of $8.
6. Assume that after the sale described in #5 ABC Corp. returned25 pencil cases to XYZ Corp. Assume the cases are still like newand XYZ places them back into inventory.
7. On April 15, 20X4, XYZ Corp. sells 500 cases of staples toState University on account for $1,500 with the payment terms 2/10,n/30 and the staples had a cost of $925. State University pays XYZCorp. in full on April 24, 20X4.
