Question

E5B-31 Journalizing purchase and sales transactions-periodic inventory system Journalize the following transactions for Master Bicycles using the periodic inventory system. Explanations are not required. Nov. 2 6 8 10 Purchased $3,400 of merchandise inventory on account under terms 2/10, n/EOM and FOB shipping point. Returned $800 of defective merchandise purchased on November 2. Paid freight bill of $100 on November 2 purchase. Sold merchandise inventory on account for $6,100. Payment terms were 3/15, n/45. Paid amount owed on credit purchase of November 2, less the return and the discount. Received cash from November 10 customer in full settlement of their debt, less the discount. 11 22

Answer 1

Credit Date General journal Nov-02 Purchases Accounts payable Debit $3,400.00 $3,400.00 (To Record Purchase on account) $ 800.00 Nov-06 Accounts Paybale Purchase Returns and allowances $ 800.00 (To Record Returns) $ 100.00 Nov-08 Freight in Cash $ 100.00 (To Record freight paid) $ 6,100.00 Nov-10 Accounts Receivable Sales $ 6,100.00 (To Record sales on account) $2,600.00 Nov-11 Accounts Payable Cash Purchase discount $2,548.00 $ 52.00 (To Record payment) Nov-22 Cash Sales Discount Accounts receivable $ 5,917.00 $ 183.00 $ 6,100.00 (To Record receipt of payment)