Answer to Question #270211 in Finance for Sindi Mio

Question

Firm K, which uses the method of continuous inventory, performed during June the following economic operations:

1-On June 1, he bought goods with immediate payment worth 18,000 ALL.

2-On June 4, he bought goods on credit with the condition 2/10, n / 30, with a value according to the purchase price of 40,000 ALL.

3-On June 5, goods worth 1200 ALL were returned to the supplier on June 4 because they had defects.

4-On June 10, goods were sold on credit with the condition of 2/10, n / 60 with a value of 50,000 ALL. The cost of goods sold was 45,000 ALL.

5-On June 12, the value of the purchased goods was paid on June 4 minus the value of the returned goods earning the purchase discount. Required: To reflect the economic events in the form of effects +/- in the respective accounts.

Answer 1

1.the receipt of goods from the supplier is reflected: Debit "Goods in warehouses" (+) Credit "Settlement with suppliers and contractors" (+) - 18 000.

2. Debit "Goods in warehouses" (+) Credit "Settlements on short-term loans and borrowings" (+)- 40 000

3.Debit "Settlement with suppliers and contractors" (-) Credit "Goods in warehouses" (-) - 1200

4.Debit"Settlements with buyers and customers" Credit "Sales" - 50 000

Debit "Sales" Credit "Settlements with buyers and customers" Credit "Goods in warehouses" - 45000

5.Debit"Settlement account" Credit "Settlements with buyers and customers" - 56 800 (40 000+ 18000-1200)