Prepare journal entries to record the following merchandise transactions of Geo Company, which applies the...
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Prepare journal entries to record the following merchandise transactions of Geo Company, which applies the perpetual inventory system (10 points) May Purchased merchandise from Amok Company for $22,400 under credit terms of 215, n/45 1 FOB shipping point, and invoice dated May 1 2 Paid $500 cash for shipping charges related to the May 1 purchase 4 S old Merchandise to Lawton for $18,000 under credit terms of 1/10, n/30, FOB destination invoice dated May 4. The merchandise had cost $10,800 5 Paid $350 cash for shipping charges related to the May 4 sale. 6 Returned $2,000 of the merchandise purchased on May 1 to Amok Compan 14 Received the balance due from Lawton less the return. 15 Paid the amount due to Amok Company 17 Lawton returned merchandise from the May 4 sale that had cost Geo $625 and had been sold for $1,000 before any discounts were applied. The merchandise was restored to inventory and a cash refund was processed for Lawton
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