For each of the following situations, record the journal entries required.
On February 1, 2014, Alloy Company purchased $5,000 of merchandise from Alysou Company on account, terms 2/15, n/30, FOB shipping point. The goods cost Alysou $2,900. Alysou uses the perpetual inventory method.
On March 1, Alysou purchased a patent for $6,000. The patent was registered with the Canadian Intellectual Property Office 8 years ago. Alysou estimated that it would keep the patent for 8 years. Amortization is recorded on December 31.
On April 23, Lauren paid $4,650 to Alysou Company to fulfill her promissory note agreement. Of the $4,650, $650 is interest.
A year end physical count is performed for Alysou Company and it is determined that $25,240 worth of inventory is on hand on December 31. The balance sheet has a value of $26,700 as the inventory balance.

Question

Quizplus · Accepted Answer

The Answer of For each of the following situations, record the journal entries required.
On February 1, 2014, Alloy Company purchased $5,000 of merchandise from Alysou Company on account, terms 2/15, n/30, FOB shipping point. The goods cost Alysou $2,900. Alysou uses the perpetual inventory method.
On March 1, Alysou purchased a patent for $6,000. The patent was registered with the Canadian Intellectual Property Office 8 years ago. Alysou estimated that it would keep the patent for 8 years. Amortization is recorded on December 31.
On April 23, Lauren paid $4,650 to Alysou Company to fulfill her promissory note agreement. Of the $4,650, $650 is interest.
A year end physical count is performed for Alysou Company and it is determined that $25,240 worth of inventory is on hand on December 31. The balance sheet has a value of $26,700 as the inventory balance.

For Each of the Following Situations, Record the Journal Entries