Question

In: Accounting

Following is the list of business transactions took place in Cameroon. Both companies use a perpetual...

  1. Following is the list of business transactions took place in Cameroon. Both

companies use a perpetual inventory system. (Currency in Central African CFA franc, FCFA) (30%)

  1. On June 10, 2020, Hamadou Company in Yaoundé purchased FCFA 800,000 of merchandise from Moussa Company in Douala, FOB shipping point, with 3/10, n/30 discount terms.
  2. Hamadou pays the freight costs of FCFA 40,000 on June 11.
  3. On June 19, Hamadou pays Moussa Company in full, less the purchase discount.

Instructions:

  1. Prepare separate entries for each transaction on the books of Hamadou Company.
  2. Prepare separate entries for each transaction for Moussa Company. Themerchandise purchased by Hamadou on June 10 had cost Moussa FCFA 480,000.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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