The Bixby Co $\$ 6,000$ From the Shelby Manufacturing Co $10 , \mathrm { n } / 30$

question 74

Essay

The Bixby Co. had the following transactions involving the purchase of merchandise. Prepare the necessary general journal entries. Any applicable freight costs are prepaid by the seller. The perpetual inventory method is in use.
June 16 Purchased merchandise having a price of $\$ 6,000$ from the Shelby Manufacturing Co. on account with credit terms $10 , \mathrm { n } / 30$ . Transportation terms F.O.B destination.
June 16 Purchased merchandise having a price of $\$ 9,000$ from the Ajax Supply House on account with credit terms $2 / 10 , \mathrm { n } / 30$ . Transportation terms F.O.B shipping point. The freight costs were $\$ 175$ .
June 17 Received the goods from Shelby.
June 17 Received the goods from Ajax.
June 20 Returned for credit merchandise with an invoice price of $\$ 800$ to Ajax.
June 25 Paid Shelby the amount owed.
June 28 Paid Ajax the amount owed.
June 30 Returned for cash, merchandise with an invoice price of $\$ 400$ to Shelby.
-Prepare the necessary general journal entry for June 28.

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Definitions:

Internal Auditors

Professionals who perform audits within an organization to assess the effectiveness of its risk management, control, and governance processes.

Employee Collusion

When two or more employees work together secretly and deceitfully to commit fraud or theft against their employer, often undermining the employer's interests.

Internal Control

Procedures and policies implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Signature Card

A document that a bank keeps on file with the signatures of all the authorized signatories for an account.