Taras Treasures uses the Perpetual Inventory Method. She sells her inventory to her customer on Accounts Receivable, with Net payment options.
Tara had the following entries during December :
a Tara purchases $ in Inventory from Keiras Karts Company on Account Payable, Terms FOB Shipping Point, Net
b Tara pays $ in shipping costs
c Tara sells Inventory to Noelles Napkin Company for $ on Accounts Receivable, the Inventory Cost $ FOB Destination.
d Tara pays the Delivery Shipping Expenses for the sale to Noelle.
e Tara returns Inventory for $ back to Keira
f Tara pays Keira within the day discount period.
g Noelle returns $ of the sale back to Tara, the Inventory returned cost $
h Noelle pays Tara within the days discount period:
REQUIRED:
i Record the entries in the Journal
ii What is the ending balance in Inventory and Cost of Goods Sold.
