Table 5-6
the Following Are Transactions for Latest Fashions for the Month

question 118

Essay

Table 5-6
The following are transactions for Latest Fashions for the month of June. $\text {June 2 Purchased \(\$ 2,000\) of inventory under terms \(1 / 10 , \mathrm { n } / 60\) and \(\mathrm { FOB }\) shipp ing point from Trendy}$
$\text {Manufacturing. The merchandise had cost Trendy \(\$ 1,800\).}$
$\text {June 7 Returned defective merchandise to Trendy Manufacturing with invoice price of \(\$ 400\).}$
$\text {June 8 Paid the freight charges on the purchase from Trendy Manufacturing in cash for \(\$ 100\).}$
$\text {June 9 Sold merchandise to New Miss Store on account for \(\$ 5,000\) with terms \(2 / 15 , \mathrm { n } / 60 \mathrm { FOB }\) }$
$\text {shipping point. Cost of the merchandise sold was \(\$ 4,000\).}$
$\text {June 10 Paid Trendy Manufacturing the balance on account.}$
$\text {June 12 Granted sales allowance of \(\$ 300\) to New Miss Store for defective merchandise.}$
$\text {June 23 Collected balance owed from New Miss Store.}$
-Refer to table 5-6. Prepare the journal entries for Latest Fashions for the transactions listed, assuming that Latest Fashions uses a periodic inventory system.

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Definitions:

Truck

A large motor vehicle designed for transporting goods by road.

Sum-Of-The-Years-Digits

A method of depreciation that accelerates costs based on the premise that an asset is more productive in its earlier years than its later years.

Scrap Value

The estimated residual value of an asset after its useful life has ended.

Camera Unit

A complete devise for capturing photographs or videos, including the body, lens, and potentially other integrated components.