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Question: The following information relates to Cedeno Co.
April 5 Purchased merchandise from Fogel for $30,000, terms 2/10,net 30, FOB shipping point.
April 6 Paid freight costs of $800 on merchandise purchased from Fogel.
April 7 purchased equipment on account for $37,000
April 8 returned some of April 5 merchandise to Fogel which cost $3,000
April 15 paid the amount due to Fogel .
a. Prepare journal entries for Cedeno using the periodic inventory system
b. Assume that Cedeno paid the balance due on May 4 instead of April 15. Prepare the journal entry.
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