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    dscheff11's Avatar
    dscheff11 Posts: 1, Reputation: 1
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    #1

    Oct 13, 2008, 05:05 PM
    Fifo accounting
    E5-2

    Information related to Steffens Co. is presented below.

    1. On April 5, purchased merchandise from Bryant Company for $25,000 terms 2/10, net/30, FOB shipping point.
    2. On April 6 paid freight costs of $900 on merchandise purchased from Bryant.
    3. On April 7, purchased equipment on account for $26,000.
    4. On April 8, returned damaged merchandise to Bryant Company and was granted a $4,000 credit for returned merchandise.
    5. On April 15 paid the amount due to Bryant Company in full

    Instructions

    (a) Prepare the journal entries to record these transactions on the books of Steffens Co. under a perpetual inventory system. (List multiple debit/credit entries in descending order of amount.)

    Date Description Debit Credit
    Apr. 5

    Apr. 6

    Apr. 7

    Apr.8

    Apr. 15



    (b) Assume that Steffens Co. paid the balance due to Bryant Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

    Date Description Debit Credit
    May 4
    tinkey22's Avatar
    tinkey22 Posts: 1, Reputation: 1
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    #2

    Mar 15, 2009, 02:52 PM
    Dfgsf
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