Periodic Inventory - Freight Costs Video Lessons

Concept

# Problem: Cainas Cookies places an order with Publix for ingredients on 10/29 for $300. Publix ships these on 10/31 and they arrive on 11/2, terms 1/10, n/30, FOB shipping point. Cainas pays for these on 11/5. Assuming periodic inventory system, what journal entry should Cainas make on 10/31? a. Debit: Inventory$300 and Credit: A/P $300 b. Debit: Purchases$300 and Credit: A/P $297 and Purchase discounts$3 c. Debit: Purchases $300 and Credit: A/P$300 d. Debit: Inventory $300 and Credit: A/P$297 and Credit: Purchase discounts $3 ###### FREE Expert Solution ###### Problem Details Cainas Cookies places an order with Publix for ingredients on 10/29 for$300. Publix ships these on 10/31 and they arrive on 11/2, terms 1/10, n/30, FOB shipping point. Cainas pays for these on 11/5. Assuming periodic inventory system, what journal entry should Cainas make on 10/31?

a. Debit: Inventory $300 and Credit: A/P$300

b. Debit: Purchases $300 and Credit: A/P$297 and Purchase discounts $3 c. Debit: Purchases$300 and Credit: A/P $300 d. Debit: Inventory$300 and Credit: A/P $297 and Credit: Purchase discounts$3