Solution-What amount would they record as cost of goods sold

What amount would they record as cost of goods sold

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Reference no: EM132496944

Information related to Pagnucci Co. is presented below.

1. On April 5, purchased merchandise from Mockingbird Company for $20,000 terms 2/10, net/30, FOB shipping point.

2. On April 6 paid freight costs of $500 on merchandise purchased from Mockingbird.

3. On April 7, purchased equipment on account for $29,000.

4. On April 8, returned damaged merchandise to Mockingbird Company and was granted a $3,000 credit for returned merchandise.

5. On April 15 paid the amount due to Mockingbird Company in full.

Instructions:

Question (a) On April 20, Pagnucci sold 60% of the goods purchased from Mockingbird. What amount would they record as cost of goods sold?

Question (b) Assume that Pagnucci Co. paid the balance due to Mockingbird Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

Reference no: EM132496944

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What amount would they record as cost of goods sold

Reference no: EM132496944

Reference no: EM132496944

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