A. Prepare Shirley's journal entries for each of the following transactions, assuming use of a...
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Accounting
A. Prepare Shirley's journal entries for each of the following transactions, assuming use of a periodic inventory system and the "gross method" of recording: 1. To record the invoice on May 5. 2. To record the return of the Fall Color collection on May 7. 3. To record the payment of the balance due if payment occurred on May 10. 4. To record the payment of the balance due if payment occurred on May 20. 5. Terra Wear paid $100 in shipping on May 20
B. Repeat requirement A (transactions) for Terra Wear. For purposes of the problem, we are assuming that Terra Wear uses a perpetual inventory system (record COGS every time inventory is sold) and the cost of inventory is 50% of selling price.
C. Create an abbreviated Income Statement for Terra Wear (only 1 transaction).
Shirley Williams Apparel Store purchases clothing merchandise on account from various vendors. Below is an invoice from Terra Wear
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