Question

Kool Beans Gourmet Coffee uses a periodic inventory system. Prepare general Journal entries to record the following transactions for Kool Beans: Kool Beans purchased merchandise on credit from Trice Foods for June $9,000, terms 2/10,n/30, FOB destination. Transportation costs of $350 were paid by Trice. 12 Kool Beans returned $600 of merchandise from the June 10 purchase. 19 Kool Beans paid Trice Foods for the June 10 purchase.

Answer 1

Solution:

Date	Account title	Debit	Credit
10-June	Purchases	9000
	Accounts payable		9000
12-June	Accounts payable	600
	Purchase returns and allowances		600
19-June	Accounts payable (9000 - 600)	8400
	Purchase discount (8400*2%)		168
	Cash		8232