Question

1 On April 5, purchased merchandise from Wildhorse Company for $26,000, on account, terms 2/10, 1/30. 2. On April 6, pald freight costs of $2,000 on merchandise purchased from Wildhorse Company 3. On April 7. purchased equipment on account for $37.000. 4. On April 8, returned $5,000 of the April 5 merchandise to Wildhorse Company 5. On April 15, paid the amount due to Wildhorse Company in full. Your answer is partially correct Prepare the journal entries to record these transactions on the books of Windsor using a periodic inventory system. ( lo entry is required, select "No E amounts. Credit account titles are automatically Indented when amount is entered. Do not indent manually No. Date Account Titles and Explanation Debit Credit 1 April 5 : Inventory Accounts Payable April6 : Freight-in Aprill : Equipment Accounts Payable April 80 Accounts Payable 5.000 MacBook Air 80. 9884 Izren

Answer 1

Requirement 1:

No.	Date	Account title and Explanation	Debit	Credit
1	Apr 5	Inventory	$26,000
		Accounts payable		$26,000
		[To record purchase of inventory on account]
2	Apr 6	Freight-in	$2,000
		Cash		$2,000
		[To record payment of freight]
3	Apr 7	Equipment	$37,000
		Accounts payable		$37,000
		[To record purcahse of equipment on account]
4	Apr 8	Accounts payable	$5,000
		Inventory		$5,000
		[To record purchase returns]
5	Apr 15	Accounts payable [26,000-5,000 reruns]	$21,000
		Inventory [21,000 x 2%]		$420
		Cash		$20,580
		[To record cash paid for accounts payable]

Requirement 2:

If paid on May 4 instead of Apr 15 then no discount applied. So, Entry for May 4 is as follows;

Date	Account title and Explanation	Debit	Credit
May 4	Accounts payable [26,000- 5,000 returns]	$21,000
	Cash		$21,000
	[To record cash paid for accounts payable]