OTA Corporation Completed the Following Events as Part of Its

question 57

Essay

OTA Corporation completed the following events as part of its acquisition / payment process. Record each one in general journal format; if an event does not require a journal entry, write "not applicable."
A. Received request to order 300 units of inventory with an expected cost of $1,400.
B. Purchased inventory on account, $1,500. Terms: 2 / 10, n / 30.
C. Paid freight bill on inbound inventory, $300.
D. Received previously ordered inventory.
E. Returned previously purchased merchandise to supplier, $200.
F. Paid vendor total amount owed on the 15th day after purchase.

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Definitions:

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and disseminating a wide array of economic data, including employment, inflation, and productivity statistics.

Consumer Price Index

An indicator that calculates the weighted mean of the cost of a selection of consumer products and services, used to signify the rate of inflation.

Cost of Living

Cost of Living refers to the amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time.

Inflation Rate

The increase pace in the cost of living, as reflected in goods and services prices, leading to reduced money value.