Question

Purchase-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Niles Co. during March of the current year. Niles Co. uses the net method under a perpetual inventory system.

Mar. 1.Purchased merchandise from Haas Co., $10,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice.

5.Purchased merchandise from Whitman Co., $15,717, terms FOB destination, n/30.

10.Paid Haas Co. for invoice of March 1.

13.Purchased merchandise from Jost Co., $12,850, terms FOB destination, 2/10, n/30.

14.Issued debit memo to Jost Co. for merchandise with an invoice amount of $4,450 returned from purchase on March 13.

18.Purchased merchandise from Fairhurst Company, $26,610, terms FOB shipping point, n/eom.

18.Paid freight of $390 on March 18 purchase from Fairhurst Company.

19.Purchased merchandise from Bickle Co., $20,000, terms FOB destination, 1/10, n/30.

23.Paid Jost Co. for invoice of March 13, less debit memo of March 14.

29.Paid Bickle Co. for invoice of March 19.

31.Paid Fairhurst Company for invoice of March 18.

31.Paid Whitman Co. for invoice of March 5.

Required:

Journalize the entries to record the transactions of Niles Co. for March.

If an amount box does not require an entry, leave it blank.

Mar. 1

Mar. 5

Mar. 10

Mar. 13

Mar. 14

Mar. 18

Mar. 18

Mar. 19

Mar. 23

Mar. 29

Mar. 31

Mar. 31

Check My Work

Answer 1

1-Mar	Inventory				10951
	Accounts payable-Hass co					10,951
	(10950*98%+220)
5-Mar	inventory				15,717
	Accounts payable-Whitman co.					15,717
10-Mar	Accounts payable-Hass co				10951
	Cash					10951
13-Mar	Inventory				12593
	Accounts payable-Jost Co.					12,593
14-Mar	Accounts payable-Jost Co.				4361
	Inventory					4,361
	(4,450*98%)
18-Mar	Inventory				26,610
	Accounts payable-Fairhurst company					26,610
18-Mar	inventory				390
	cash					390
19-Mar	Inventory				19800
	Accounts payable-Bickle Co					19,800
	(20000*99%)
23-Mar	Accounts payable-Jost Co.				8232
	cash					11,564
29-Mar	Accounts payable-Bickle Co				19800
	Cash					19800
31-Mar	Accounts payable-Fairhurst company				26,610
	Cash					26,610
31-Mar	Accounts payable-Whitman co.				15,717
	Cash					15,717