IDNLearn.com provides a comprehensive platform for finding accurate answers. Our experts are available to provide accurate, comprehensive answers to help you make informed decisions about any topic or issue you encounter.
Prepare the necessary general journal entries for the month of October for Crane Retail for each situation given below. Crane uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Oct. 5 Paid cash of $10,332 for operating expenses that were incurred and properly recorded in the previous period.
9 Purchased merchandise for $18,000 on account. Credit terms: 3/10, n/30.
12 Paid a freight bill of $90 for merchandise purchased on October 9.
17 Paid for merchandise purchased on October 9. The company takes all discounts to which it is entitled.
20 Sold merchandise for $6,560 to Rattles Distribution on account. The cost of the merchandise sold was $2,624. Credit terms: 2/10, n/30.
26 Issued a credit memo to Rattles Distribution for $246 for merchandise returned from the sale on October 20. The cost of the merchandise returned was $148.
The necessary journal entries for October month are attached below in the image :
What do you mean by journal entries?
All company transactions are documented in journal entries. Generally speaking, a transaction is any financial activity that has an effect on a business.
All the necessary journal entries are attached below:
Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. IDNLearn.com has the answers you need. Thank you for visiting, and we look forward to helping you again soon.
