Exercise 4-5 Recording purchase returns and allowances LO P1 Allied Parts was or

Question

Exercise 4-5 Recording purchase returns and allowances LO P1 Allied Parts was organized on May 1, 2013, and made its first purchase of merchandise on May 3. The purchase was for 1,200 units at a price of $8 per unit. On May 5, Allied Parts sold 720 of the units for $12 per unit to Baker Co. Terms of the sale were 2/10, n/60 a. On May 7, Baker returns 252 units because they did not fit the customer's needs. Allied Parts restores the units to its inventory b. On May 8, Baker discovers that 60 units are damaged but are still of some use and, therefore, keeps the units. Allied Parts sends Baker a credit memorandum for $240 to compensate for the damage c. On May 15, Baker discovers that 72 units are the wrong color. Baker keeps 43 of these units because Allied Parts sends a $92 credit memorandum to compensate. Baker returns the remaining 29 units to Allied Parts. Allied Parts restores the 29 returned units to its inventory Prepare the appropriate journal entries for Baker Co. to record the May 5 purchase and each of the three separate transactions a through c. Baker is a retailer that uses a perpetual inventory system and purchases these units for resale view transaction list view general journal Journal Entry Worksheet On May 8, Baker discovers that 60 units are damaged but are still of some use and, therefore, keeps the units. Allied Parts sends Baker a credit memorandum for $240 to compensate for the damage Date General Journal Debit Credit May 08 *Enter debits before credits

Explanation / Answer

Exercise 4-5 Recording purchase returns and allowances LO P1 Allied Parts was or

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.