Question

Prepare the journal entries to record these transactions on Cullumber Company's books using a periodic inventory system. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) (b) (c) On March 2, Cullumber Company purchased $939,500 of merchandise from Marin Company, terms 3/10, n/30. On March 6, Cullumber Company returned $115,900 of the merchandise purchased on March 2. On March 12, Cullumber Company paid the balance due to Marin Company. No. Date Account Titles and Explanation Debit Credit (a) (0)

Answer 1

Journal entry

Date	account and explanation	debit	Credit
Mar 2	Purchase	939500
	Account payable		939500
Mar 6	Account payable	115900
	Purchase return and allowance		115900
Mar 12	Account payable (939500-115900)	823600
	Cash (823600*97%)		798892
	Purchase discount		24708

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