Take me to the text Beds Unlimited received a shipment of bed sheets on January...
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Take me to the text Beds Unlimited received a shipment of bed sheets on January 1, 2018. The value of the bed sheets was $14,000 and the sheets were shipped FOB shipping point. Freight charges came to $220. This company uses the perpetual inventory system. Do not enter dollar signs or commas in the input boxes Required a) Prepare the journal entry to record the receipt of goods by Beds Unlimited, assuming the payment will be made in February Date Account Title and Explanation Debit Credit 2018 Jan 1 Merchandise Inventory Accounts Receivable Purchased inventory b) The bed sheets delievered to Beds Unlimited were the wrong material. After some negotiation, the manager agreed to keep the products with a 20% allownace. Prepare the journal entry on January 17, 2018 to record the purchase allowance. Assume that all bed sheets are still in inventory. Allowances are not granted on freight charges. Date Account Title and Explanation Debit Credit 2018 Jan 17 Accounts Payable Merchandise Inventory Purchase Allowance Prepare the journal entry for Beds Unlimited when the payment is made on February 1 2018 Date Account Title and Explanation Debit Credit 2018 Feb 1 Accounts Payable Cash Payment for bed sheets
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