Question

events was as follows: June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10,n/30 Returned goods costing $1,100 to Diamond Inc. for full credit Purchased goods from Club Corp. for $1,000 with terms 2/10, 1/30. 11 Paid the balance owed to Diamond Inc. Paid Club Corp. in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on na at the beginning of the month. Calculate the cost of inventory as of June 30. LO 6-3 E6-10 Recording Journal Entries for Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System Using the information in E6-9, prepare journal entries to record the transactions, assy uses a perpetual inventory system. actions, assuming A

Answer 1

	Date	Account titles and explanation	Debit	Credit	Calculations
	03-Jun	Merchandise inventory	$4,100
		Account payable		$4,100
		(Inventory purchased)
	05-Jun	Account payable	$1,000
		Merchandise inventory		$1,000
		(Goods returned to diamond)
	06-Jun	Merchandise inventory	$1,000
		Account payable		$1,000
		(Inventory purchased)
	11-Jun	Account payable	$3,100		(4100-1000)
		Cash		$3,038	(3100*98%)
		Merchandise inventory		$62	(3100*2%) Discount allowed since, payment made within 10 days.
		(Payment made to diamond within discount period)
	22-Jun	Account payable	$1,000
		Cash		$1,000
		(payment made to Club corp. after discount period)

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