Answer to Question #235964 in Accounting for fgghhgc

Question

1. Presented Below are selected transactions for ABC Company during  June 2021. ABC uses the perpetual inventory system.

June  4 Purchase merchandise from Mr. X at a cost of taka 45000, terms FOB shipping point, 3/10, n/30.

June  5 Paid freight charges of taka 2000 on June 4 merchandise purchase

June  7 Returned damaged goods costing taka 7000 received from Mr. X 

June 13 Sold merchandise to Mr. Y costing taka 15000 on accounts for 21000, terms FOB destination point 1/10, n/30.

June 14 Paid Mr. X due related to June 4 transactions.

June   15 Paid freight on June 13 sale taka 2500.

June 16 Made refunds to Mr. Y for defective Merchandise taka 2100

June 21 Received balance due from Mr. Y.

    

Requirement: Journalize the transactions using net basis.

Answer 1

Solution:

The journal entries are as below: