Solution
Kiran answered on
Jul 18 2021
Sheet1
Part 1
Brown Company
JOURNAL
Date Account Debit Credit
May. 4 Cash 100,000
Sales revenue 100,000
Cost of goods sold 55,000
Merchandise Inventory 55,000
May. 5 Merchandise Inventory 40,000
Freght In 400
Accounts Payable 40,400
May. 12 Accounts Receivable 17,000
Sales revenue 17,000
Cost of goods sold 10,000
Merchandise Inventory 10,000
May. 13 Sales return & Allowances 3,000
Accounts receivable 3,000
Merchandise Inventory 1,765
Cost of goods sold 1,765
May. 14 Accounts Payable 40,400
Merchandise Inventory 800
Cash 39,600
May. 22 Accounts Receivable 90,000
Sales revenue 90,000
Cost of goods sold 55,000
Merchandise Inventory 55,000
May. 25 Sales return & Allowances 40,000
Accounts receivable 40,000
Merchandise Inventory 25,000
Cost of goods sold 25,000
May. 28 Cash 14,000
Accounts receivable 14,000
May. 31 Credit card charges - Expense 3,000
Cash 3,000
Part 2
What does FOB mean?
FOB stands for Free on "Board". This means the goods will be supplied by the seller, free upto to the place, it is mentioned.
What are two types of FOB, and who pays under each method.
Thw two types of FOB are - FOB - shipping point - in this case the seller leaves the goods upto shipping point. After the shipping point, seller...