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Prepare the journal entries to record the following purchase transactions in Culver Inc
Prepare the journal entries to record the following purchase transactions in Culver Inc.s books. Culver uses a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Jan. 2 5 Culver purchased goods for $48,600 from Fundy Corp., terms n/45, FOB destination. The appropriate company paid freight costs of $1,000. Culver returned $6,480 of the goods purchased on January 2, because they were not needed. Culver paid the balance owed to Fundy. 6 11 Date Account Titles and Explanation Debit Credit Jan. 2 Inventory 48600 Accounts Payable 48600 Jan. 5 No Entry 0 No Entry O Jan. 6 Accounts Payable 6480 Inventory 6480 Jan. 11 Accounts Payable 42120 Cash 41258
Expert Solution
The journal entry for the balance paid which was owed to Fundy will be e debited to accounts payable as the account is no more payable and therefore it will reduce the balance of accounts payable and crediting cash account as cash is paid and therefore it will reduce the cash balance
Journal entry for Jan 11th will be
Account payable account debit $42,120
To cash account credit. $42,120.
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