Purchases and freight costB-05.05Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers.Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery recordsall purchases "gross" and uses a periodic inventory system.Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journa!entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000and freight is $100.Cash DiscountDiscount ConditionFreight TermsF.O.B. Shipping point/freight prepaidScenario2/10, n/30taken22/10, n/30FO.B. Shipping point/freight prepaidmissed3.2/10, n/30F.O.B. Destination/freight prepaidtaken42/10, n/30F.O.B. Destination/freight prepaidmissedF.O.B. Shipping point/freight collectF.O.B. Shipping point/freight collect2/10, n/30taken2/10, n/30missedThe first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet ver-sion expedites your solution by including a journal pick list of the following accounts:CashPurchasesAccounts PayablePurchase DiscountsFreight-in

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Description: Purchases and freight costB-05.05Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers.Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery recordsall purcha

Journal entry - It refers to the process where the business transactions are recorded in the books…

Business

Accounting

Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery records all purchases "gross" and uses a periodic inventory system. Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journal entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000 and freight is $100. Cash Discount Freight Terms FO.B. Shipping point/freight prepaid Scenario Discount Condition 2/10, n/30 taken 2/10, n/30 FO.B. Shipping point/freight prepaid missed 3 2/10, n/30 FO.B. Destination/freight prepaid taken FO.B. Destination/freight prepaid 4. 2/10, n/30 missed 5 2/10, n/30 F.O.B. Shipping point/freight collect taken 2/10, n/30 FO.B. Shipping point/freight collect missed The first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet ver- sion expedites your solution by including a journal pick list of the following accounts: Cash Purchases Accounts Payable Purchase Discounts Freight-in

Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery records all purchases "gross" and uses a periodic inventory system. Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journal entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000 and freight is $100. Cash Discount Freight Terms FO.B. Shipping point/freight prepaid Scenario Discount Condition 2/10, n/30 taken 2/10, n/30 FO.B. Shipping point/freight prepaid missed 3 2/10, n/30 FO.B. Destination/freight prepaid taken FO.B. Destination/freight prepaid 4. 2/10, n/30 missed 5 2/10, n/30 F.O.B. Shipping point/freight collect taken 2/10, n/30 FO.B. Shipping point/freight collect missed The first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet ver- sion expedites your solution by including a journal pick list of the following accounts: Cash Purchases Accounts Payable Purchase Discounts Freight-in

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 2TP: You have decided to open up a small convenience store in your hometown. As part of the initial...

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USE GOOGLE SHEET Use the template below and create your own invoice for purchased products of a VAT registered customer. The products are enumerated below with unit price at gross of VAT, a 3% discount has been given to the customer. Do all formulas required. Format the invoice for clarity.
CASE 2. MODALITY COMPANY The following describes the expenditure cycle manual procedures for MODALITY Company. The inventory control clerk examines the inventory records for items that must be replenished and prepares a two-part purchase requisition. Copy 1 of the requisition is sent to the purchasing department, and Copy 2 is filed. Upon receipt of the requisition, the purchasing clerk selects a supplier from the valid vendor file (reference file) and prepares a three part purchase order. Copy 1 is sent to the supplier, Copy 2 is sent to the accounts payable department where it is filed temporarily, and Copy 3 is filed in the purchases department. A few days aftr the supplier ships the order, the goods arrive at the receiving department. They are inspected, and the receiving clerk prepares a three-part receiving report describing the number and quality of the items received. Copy 1 of the receiving report accompanies the goods to the stores, where they are secured. Copy 2 is sent to…
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SpeeDIY Sdn. Bhd. is an online Do-It-Yourself (DIY) store located in Sintok that provides home delivery of DIY products purchased via the Internet. SpeeDIY uses a fully integrated accounting system and practices automated Economic Order Quantity (EOQ) model in managing its inventory. For each registered item in the inventory database, the system specifies quantity on hand and a desired quantity on hand. When the quantity on hand falls below the desired quantity on hand, a notification automatically pops up on the purchasing clerk's computer screen, alerting the clerk to reorder the item. The purchasing clerk can proceed with the reordering of items simply by checking the acceptance box. When the acceptance box is checked, the purchase order transaction file is created. In addition, the vendor is notified electronically through a transmission from the purchasing system. The purchasing clerk prepares a purchase summary report to his manager at the end of the day. SpeeDIY warehouse has…
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