Problem 8-3 Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUN
ID: 2575018 • Letter: P
Question
Problem 8-3
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
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Date
Account Titles and Explanation
Debit
Credit
Aug. 28
SHOW LIST OF ACCOUNTS
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Date
Account Titles and Explanation
Debit
Credit
Problem 8-3
Some of the transactions of Coronado Company during August are listed below. Coronado uses the periodic inventory method.August 10 Purchased merchandise on account, $10,800, terms 2/10, n/30. 13 Returned part of the purchase of August 10, $1,300, and received credit on account. 15 Purchased merchandise on account, $15,000, terms 1/10, n/60. 25 Purchased merchandise on account, $18,600, terms 2/10, n/30. 28 Paid invoice of August 15 in full.
Explanation / Answer
Journal entries assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken
Journal entries assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses
Adjusting entry on August 31 if financial statements are to be prepared at that time
Date Account Titles and Explanation Debit Credit August 10 Inventory 10,800 Accounts Payable 10,800 August 13 Accounts Payable 1,300 Inventory 1,300 August 15 Inventory 15,000 Accounts Payable 15,000 August 25 Inventory 18,600 Accounts Payable 18,600 August 28 Accounts Payable 15,000 Cash 15,000