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:

Strategic Alliance

A cooperative agreement between two or more organizations to pursue a set of agreed upon objectives while remaining independent organizations.

Leadership Business Unit

A division or segment within an organization led by a manager with significant autonomy, responsible for strategic decisions and performance of that unit.

Self-Managing Business

A business or organization structure where teams or employees have the autonomy to make decisions and manage their activities without traditional managerial oversight.

Structural Business Partnership

A strategic alliance between companies that involves sharing resources and capabilities to achieve common business objectives, often formalized through legal agreements.