During April, Firestone purchased-goods from BF Goodrich. The sequence of events was as follows: April 1: Firestone orders 2,500 tires from BF Goodrich. BF Goodrich agrees to sell the wheels for $200 each on account under shipping terms FOB shipping point and payment terms 5/10, n45. The tires initially cost BF Goodrich $125 each on February 17th. J.B. Hunt Trucking Company will be responsible for transporting the inventory for $2,125. All shipping costs must be paid on the day of shipment. April 4: BF Goodrich loads the 2,500 tires into JB Hunt's truck. April 8: Firestone receives the shipment of tires. April 25: Firestone pays BF Goodrich for the tires previously purchased. Inventory 500,000
During April, Firestone purchased-goods from BF Goodrich. The sequence of events was as follows: April 1: Firestone orders 2,500 tires from BF Goodrich. BF Goodrich agrees to sell the wheels for $200 each on account under shipping terms FOB shipping point and payment terms 5/10, n45. The tires initially cost BF Goodrich $125 each on February 17th. J.B. Hunt Trucking Company will be responsible for transporting the inventory for $2,125. All shipping costs must be paid on the day of shipment. April 4: BF Goodrich loads the 2,500 tires into JB Hunt's truck. April 8: Firestone receives the shipment of tires. April 25: Firestone pays BF Goodrich for the tires previously purchased. Inventory 500,000
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....
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