From the information in BE5-6, prepare the journal entries to record the sales transactions on Feng Corp.’s books, assuming a periodic inventory system is used instead of a perpetual inventory system.
In BE5-6
Refer to BE5-5 and prepare the journal entries to record the following sales transactions in Feng Corp.’s books. Feng uses a perpetual inventory system.
Jan. 2 Feng sold $10,000 of merchandise to Xiaoyan Ltd., terms 1/10, n/30, FOB destination. The cost of the merchandise sold was $7,500.
5 The appropriate company paid freight costs of $150.
6 Xiaoyan returned $1,000 of the merchandise purchased from Feng on January 2, because it was not needed. The cost of the merchandise returned was $750, and it was restored to inventory.
11 Feng received the balance due from Xiaoyan.
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