WAS Liverpool

Accounting Jan 23, 2021

WAS Liverpool. coas on 10 16/2020. liverpool co purchase goods of $ 12000 from Arsenal luse credet terms (5/10,n3o) EB destination 121612020. liverpool co. returned Soads costing & 2000 to Arsenal Ins. 191612020 liverpool co. paid the out standang amount to Arsenal Ins. The entry that liver pool c. will record is. su

Expert Solution

The goods are FOB destination. Therefore the entries are:

12/6/20	Purchases Dr	12,000
	To Accounts Payable		12,000
	(Goods received)

19/6/20	Accounts Payable Dr	12,000
	To Discount Received (or Inventory Account) (12000×5%)		600
	To Cash		11,400
	(PAID)

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