Prepare the Journal Entries in Big's Books to Record the Following

question 132

Essay

Prepare the journal entries in Big's Books to record the following transactions using the perpetual inventory system:
October 1 Big Inc. purchased $5,400 of merchandise on account from Bargain Inc., terms 3/15, n/45,
FOB shipping point. Bargain prepaid the $125 shipping cost and added the amount to the invoice.
October 4 Big sold $950 (cost, $250) of merchandise on account to Wills Corp., terms 2/10
n/45, FOB destination.
October 5 Big paid $25 freight charges to deliver goods to Wills.
October 8 Big returned $600 of the merchandise purchased on October 1 and received a credit.
October 11 Paid Bargain the amount due from the October 1 purchase in full.
October 12 Wills returned $175 (cost, $100) of merchandise from the October 4 sale.
October 13 Received payment in full from Wills for the October 4sale.

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Definitions:

Anticipate

To expect or predict something to occur in the future, based on current knowledge or trends.

Conflict Resolution

entails the process of resolving a dispute or conflict by meeting at least some of each party's needs and addressing their interests.

Task-related Characteristics

Features of a job or assignment that influence its execution, such as complexity, duration, and required skill level.

Communicating

The process of transmitting information, ideas, emotions, skills, and knowledge from one entity or person to another.