Question

Presented below are transactions related to Sweet, Inc. May 10 Purchased goods billed at $14,900 subject to cash discount terms of 2/10, n/60. 11 Purchased goods billed at $17,200 subject to terms of 1/15, n/30. 19 Paid invoice of May 10. ased goods billed at $10,000 subject to cash discount terms of 2/10, n/30. (a) Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry for the account titles and enter o for the amounts. Round answers to O decimal places, e.g. 6,578, Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 10 Purchases Accounts Payable May 11 Purchases Accounts Payable May 19 Accounts Payable Cash May 24 Purchases Accounts Payable

Answer 1

Solution

Date	Accounts title and explanation	Debit	Credit
May-10	Purchases	$        14,602.00*
	Accounts payable		$    14,602.00
	(To record merchandise purchase)
May-11	Purchases	$        17,028.00**
	Accounts payable		$    17,028.00
	(To record merchandise purchase)
May-19	Accounts payable	$        14,602.00
	Cash		$    14,602.00
	(To record payment to Accounts payable)
May-24	Purchases	$          9,800.00***
	Accounts payable		$       9,800.00
	(To record merchandise purchase)

*14900 x 98%

**17200 x 99%

***10000 x 98%