Question

[The following information applies to the questions displayed below.] At the beginning of Year 2, the...

[The following information applies to the questions displayed below.]

At the beginning of Year 2, the Redd Company had the following balances in its accounts:

Cash $ 15,300
Inventory 5,500
Land 2,300
Common stock 12,000
Retained earnings 11,100


During Year 2, the company experienced the following events:

  1. Purchased inventory that cost $11,500 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $830 were paid in cash.
  2. Returned $600 of the inventory it had purchased from Ross Company because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
  3. Paid the amount due on its account payable to Ross Company within the cash discount period.
  4. Sold inventory that had cost $8,000 for $14,000 on account, under terms 2/10, n/45.
  5. Received merchandise returned from a customer. The merchandise originally cost $1,350 and was sold to the customer for $2,400 cash. The customer was paid $2,400 cash for the returned merchandise.
  6. Delivered goods FOB destination in Event 4. Freight costs of $720 were paid in cash.
  7. Collected the amount due on the account receivable within the discount period.
  8. Sold the land for $4,100.
  9. Recognized accrued interest income of $400.
  10. Took a physical count indicating that $6,800 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down.)

b. Record the events in general journal format. Assume that the perpetual inventory method and gross method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
At the beginning of Year 2, the Redd Company had the following balances in its accounts:...
At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash $ 17,300 Inventory 7,500 Land 2,700 Common stock 16,000 Retained earnings 11,500 During Year 2, the company experienced the following events: Purchased inventory that cost $11,900 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $870 were paid in cash. Returned $800 of the inventory it had purchased from Ross Company because the...
At the beginning of 2018, the Redd Company had the following balances in its accounts:   ...
At the beginning of 2018, the Redd Company had the following balances in its accounts:    Cash $ 8,600 Inventory 2,600 Common stock 8,100 Retained earnings 3,100    During 2018, the company experienced the following events: Purchased inventory that cost $6,100 on account from Redd Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $560 were paid in cash. Returned $350 of the inventory that it had purchased because the inventory was damaged in...
During Year 2, the company experienced the following events: Purchased inventory that cost $5,400 on account...
During Year 2, the company experienced the following events: Purchased inventory that cost $5,400 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $490 were paid in cash. Returned $450 of the inventory it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. Paid the amount due on its account payable to Ross Company within the cash discount period. Sold inventory...
At the beginning of 2018, the Redd Company had the following balances in its accounts:   ...
At the beginning of 2018, the Redd Company had the following balances in its accounts:    Cash $ 8,300 Inventory 2,300 Common stock 7,800 Retained earnings 2,800    During 2018, the company experienced the following events: Purchased inventory that cost $5,800 on account from Redd Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $530 were paid in cash. Returned $300 of the inventory that it had purchased because the inventory was damaged in...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit Cash $ 14,760 Inventory 3,170 Common Stock $ 7,310 Retained Earnings 10,620 Total $ 17,930 $ 17,930 The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,140. The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash. Returned...
Required information [The following information applies to the questions displayed below.] James Company began the month...
Required information [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $43,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $640 were paid in cash. On October 31, James paid for the merchandise...
The following information applies to the questions displayed below.] James Company began the month of October...
The following information applies to the questions displayed below.] James Company began the month of October with inventory of $20,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $29,500 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $550 were paid in cash. On October 31, James paid for the merchandise purchased on...
Required information [The following information applies to the questions displayed below.] James Company began the month...
Required information [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $31,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $46,000 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $660 were paid in cash. On October 31, James paid for the merchandise...
Required information [The following information applies to the questions displayed below.] James Company began the month...
Required information [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $31,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $46,000 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $660 were paid in cash. On October 31, James paid for the merchandise...
Required information [The following information applies to the questions displayed below.] Home Hardware reported beginning inventory...
Required information [The following information applies to the questions displayed below.] Home Hardware reported beginning inventory of 30 shovels, for a total cost of $270. The company had the following transactions during the month: 1.Sold 5 shovels on account at a selling price of $14 per unit. Record the transaction. 2.Sold 10 shovels on account at a selling price of $14 per unit. Record the transaction. 3.Bought 8 shovels on account at a cost of $9 per unit. Record the...