Question

Help solving Cengage Accounting I exercise

Purchase-Related Transactions Journalize entries for the following related transactions of Manville Heating & Air Company: a. Purchased $30,000 of merchandise from Wright Co, on account, terms 2/10, 1/30. b. Paid the amount owed on the invoice within the discount period. c. Discovered that $6,000 of the merchandise purchased in (a) was defective and returned items, receiving credit. d. Purchased $4,600 of merchandise from Wright Coon account, terms n/30. e. Received a refund from Wright Co. for return in (c) less the purchase in (d). Previous Next Check My Work 2 more Check My Work uses remaining

Answer 1

Date	Description				Debit	Credit
A	Merchandise inventory				29,400
	Accounts payable		(30000*98%)			29,400
B	Accounts payable				29,400
	Cash					29,400
C	Accounts payable				5880
	merchandise inventory (6000*98%)					5,880
D	Merchandise inventory				4,600
	Accounts payable					4,600
E	Cash				1,280
	Accounts payable					1,280