Question

Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 850 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5. Nov. 7 Returned 30 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, minus the return on November 7. View transaction list Journal entry worksheet < 1 2 3 Paid the amount due from the November 5 purchase, minus the return on November 7. Note: Enter debits before credits. Credit Date Nov 15 Debit 8,200 General Journal Accounts payable Cash Merchandise inventory Record entry Clear entry View general journal

Answer 1

Journal entry

Date	account and explanation	Debit	Credit
Nov 5	Merchandise inventory (850*10)	8500
	Account payable		8500
Nov 7	Account payable (30*10)	300
	Merchandise inventory		300
Nov 15	Account payable (8500-300)	8200
	Cash (8200*97%)		7954
	Merchandise inventory		246