Exercise 5-1
This information relates to Crisp Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
| 1. | On April 5, purchased merchandise from Frost Company for $28,600, terms 3/10, n/30. | |
| 2. | On April 6, paid freight costs of $720 on merchandise purchased from Frost. | |
| 3. | On April 7, purchased equipment on account for $33,500. | |
| 4. | On April 8, returned $5,300 of April 5 merchandise to Frost Company. | |
| 5. | On April 15, paid the amount due to Frost Company in full. |
| (a) | Prepare the journal entries to record the transactions listed above on Crisp Co.’s books. Crisp Co. uses a perpetual inventory system. | |
| (b) | Assume that Crisp Co. paid the balance due to Frost Company on May 4 instead of April 15. Prepare the journal entry to record this payment. |
0 comments