Question

e amount of net purchases? * Data Table Apr. 10 George Packing Supplies buys $170,000 worth of merchandise inventory on account with credit terms of 3/10, n/30. 12 George returns $15,600 of the merchandise to the vendor due to damage during shipment. 19 George paid the amount due, less the return and discount. Print Done sed Accounts Debit

Answer 1

Date General Journal Debit Credit $ 170,000 Apr-10 Purchases Accounts payable (Goods purchased on credit) $ 170,000 $ 15,600 Apr-12 Accounts payable Purchase retuns and allowances (Return of damaged goods ) $ 15,600 $ 154,400 Apr-19 Accounts payable Cash Purchase Discount (Cash paid to the creditors) $ $ 149,768 4,632 $ 4,632 Purchase discount = ($ 170000 - $ 15600 * 3%= Cash paid = $ 170000 - 15600-4632 = $ 149768. Net Purchases $ 149,768 Total Purchases Less : Purchase return and allowances Less: Purchase discount Net Purchases $ $ $ $ 170,000 (15,600) (4,632) 149,768