Solved

Johnnycake Restaurant Uses a Periodic Inventory System and the Gross

Question 214

Essay

Johnnycake Restaurant uses a periodic inventory system and the gross method of accounting for purchases. Prepare general journal entries to record the following transactions for Johnnycake:
 Aug. 10  Johnncake purchased merchandise on credit from Foster Foods for  $9,000, terms 2/10, n/30, FOB destination. Transportation costs of $350 were paid by Foster. 12 Johnrycake returned $600 of merchandise from the August 10 purchase. 19 Johnnycake paid Foster for the August 10 purchase. \begin{array} { | c | l | } \hline \text { Aug. 10 } & \text { Johnncake purchased merchandise on credit from Foster Foods for } \\& \begin{array} { l } \text { \$9,000, terms 2/10, n/30, FOB destination. Transportation costs of } \$ 350 \\\text { were paid by Foster. }\end{array} \\\hline 12 & \text { Johnrycake returned \$600 of merchandise from the August 10 purchase. } \\\hline 19 & \text { Johnnycake paid Foster for the August } 10 \text { purchase. } \\\hline\end{array}

Correct Answer:

verifed

Verified

\[\begin{array} { | r | l | r | r | }
\...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents