On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30. Shipping costs were P600. Franz Company received the goods and Emily Corporation's invoice on June 17. On June 24, Franz Company sent the payment to Emily Corporation, which Emily Corporation received on June 25. Both Emily Corporation and Franz Company use the periodic inventory system. (Disregard effects of VAT. Use the account titles "Freight In" and "Freight Out" for transportation costs.) A. Shipping terms are FOB Shipping Point, freight collect. Franz Company paid the shipping costs on June 17 and remitted payment on June 24. Question. Prepare the entry for Emily Corporation to record the cash receipt.
On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30. Shipping costs were P600. Franz Company received the goods and Emily Corporation's invoice on June 17. On June 24, Franz Company sent the payment to Emily Corporation, which Emily Corporation received on June 25. Both Emily Corporation and Franz Company use the periodic inventory system. (Disregard effects of VAT. Use the account titles "Freight In" and "Freight Out" for transportation costs.) A. Shipping terms are FOB Shipping Point, freight collect. Franz Company paid the shipping costs on June 17 and remitted payment on June 24. Question. Prepare the entry for Emily Corporation to record the cash receipt.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 36E: The following data were extracted from the accounting records of Harkins Company for the year ended...
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On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30. Shipping costs were P600. Franz Company received the goods and Emily Corporation's invoice on June 17. On June 24, Franz Company sent the payment to Emily Corporation, which Emily Corporation received on June 25. Both Emily Corporation and Franz Company use the periodic inventory system. (Disregard effects of VAT. Use the account titles "Freight In" and "Freight Out" for transportation costs.)
A. Shipping terms are FOB Shipping Point, freight collect. Franz Company paid the shipping costs on June 17 and remitted payment on June 24.
Question. Prepare the entry for Emily Corporation to record the cash receipt.
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