S Weygandt, Financial & Managerial Accounting, 2e (ACCT 2100 & 2110) On June 10,
ID: 2539606 • Letter: S
Question
S Weygandt, Financial & Managerial Accounting, 2e (ACCT 2100 & 2110) On June 10, Tuzun Company purchased $6,450 of merchandise from Epps Company, FOB shipping point, terms 2/10, nv30. Tuzun costs of $480 on June 11. Damaged goods totaling $35 0 are returned to Epps for credit on June 12. The fair value of these goods is $70. On June 19, Tuzun pays Epps Company in full, less the purchase discount. Both ally. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. Record presented im the problem.) 6,450 Accounts Payable 6,450 480 350 6,100 5,978Explanation / Answer
Answer
In the books of Tuzun Company
Date
Debit
Credit
10-Jun
Inventory
6,450
Accounts Payable
6,450
11-Jun
Inventory
480
Cash
480
12-Jun
Accounts Payable
350
Inventory
350
19-Jun
Accounts Payable (6,450 - 350)
6,100
Cash (Bal.)
5,978
Inventory ($6,100 * 2%)
122
In the books of Epps Company
Date
Debit
Credit
10-Jun
Accounts Receivable
6,450
Sales
6,450
10-Jun
Cost of Goods Sold
5,500
Inventory
5,500
12-Jun
Sales Return
350
Accounts Receivable
350
12-Jun
Inventory
70
Cost of Goods Sold
70
19-Jun
Cash
5,978
Sales Discount ($6,100 * 2%)
122
Accounts Receivable
6,100
Note
There will be no entry for the Freight in the books of Seller i.e. Epps books.
In the books of Tuzun Company
Date
Debit
Credit
10-Jun
Inventory
6,450
Accounts Payable
6,450
11-Jun
Inventory
480
Cash
480
12-Jun
Accounts Payable
350
Inventory
350
19-Jun
Accounts Payable (6,450 - 350)
6,100
Cash (Bal.)
5,978
Inventory ($6,100 * 2%)
122
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