Assume that cedeno paid the balance due on may 4 instead of


Question: The following information relates to Cedeno Co.

April 5 Purchased merchandise from Fogel for $30,000, terms 2/10,net 30, FOB shipping point.

April 6 Paid freight costs of $800 on merchandise purchased from Fogel.

April 7 purchased equipment on account for $37,000

April 8 returned some of April 5 merchandise to Fogel which cost $3,000

April 15 paid the amount due to Fogel .

a. Prepare journal entries for Cedeno using the periodic inventory system

b. Assume that Cedeno paid the balance due on May 4 instead of April 15. Prepare the journal entry.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Assume that cedeno paid the balance due on may 4 instead of
Reference No:- TGS02544354

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)