Summary

Summary The following April transactions relate to CargoTranspo Inc. April 5 Purchased inventory f

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Course
ACC 290

Institution
Axia University Of Phoenix

The following April transactions relate to CargoTranspo IncThe following April transactions relate to CargoTranspo Inc. April 5 Purchased inventory for $33,600 , with terms 2/10, n/30. 7 Returned $3,000 of inventory (damaged in shipment) to the supplier. 20 Paid $14,700 ( $15,000 of inventory less ...

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Uploaded on October 6, 2024
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Type Summary

600
with terms 210
n30 7 returned 3
700 15
the following april transactions relate to cargotr
000 of inventory damaged in shipment to the supp
000 of inventory less discount of 300 on accoun

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The following April transactions relate to CargoTranspo Inc. April 5 Purchased

inventory for $33,600 , with terms 2/10, n/30. 7 Returned $3,000 of inventory

(damaged in shipment) to the supplier. 20 Paid $14,700 ( $15,000 of inventory

less discount of $300 ) on account. 30 Paid the remaining accounts payable

balance. Required Prepare journal entries for these transactions assuming the

company uses the perpetual inventory system and the gross method for

recording purchase discounts. Date Account Dr. Cr. April 5 CashAccounts

PayableAccounts ReceivableCost of Goods SoldDeferred RevenueFreight-

inInterest ExpenseInventoryOther ExpensesPurchase DiscountsPurchase

Returns and AllowancesPurchasesSales ReturnSales RevenueGain on Inventory

OverageLoss on Inventory ShortageN/A Answer 1 CashAccounts

PayableAccounts ReceivableCost of Goods SoldDeferred RevenueFreight-

inInterest ExpenseInventoryOther ExpensesPurchase DiscountsPurchase

Returns and AllowancesPurchasesSales ReturnSales RevenueGain on Inventory

OverageLoss on Inventory ShortageN/A Answer 2 To record purchase of

inventory April 7 CashAccounts PayableAccounts ReceivableCost of Goods

SoldDeferred RevenueFreight-inInterest ExpenseInventoryOther

, ExpensesPurchase DiscountsPurchase Returns and AllowancesPurchasesSales

ReturnSales RevenueGain on Inventory OverageLoss on Inventory

ShortageN/A Answer 3 CashAccounts PayableAccounts ReceivableCost of

Goods SoldDeferred RevenueFreight-inInterest ExpenseInventoryOther

ExpensesPurchase DiscountsPurchase Returns and AllowancesPurchasesSales

ReturnSales RevenueGain on Inventory OverageLoss on Inventory

ShortageN/A Answer 4 To record inventory return April 20 CashAccounts

PayableAccounts ReceivableCost of Goods SoldDeferred RevenueFreight-

inInterest ExpenseInventoryOther ExpensesPurchase DiscountsPurchase

Returns and AllowancesPurchasesSales ReturnSales RevenueGain

Answer & Explanation

To prepare the journal entries for CargoTranspo Inc. using the perpetual

inventory system and the gross method for recording purchase discounts, follow

these steps:

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Summary The following April transactions relate to CargoTranspo Inc. April 5 Purchased inventory f

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