Question

Prepare the journal entries to record these transactions on Carla Vista Kitchen's books using a periodic inventory system - Your answer is partially correct. On March 2, Carla Vista purchased £872,500 of merchandise on account from Flint Cabinets, terms 3/10,n/30. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Accounts Receivable 872500 Accounts Payable 872500 - Your answer is partially correct. On March 6, Carla Vista returned £126,400 of the merchandise purchased on March 2. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Accounts Payable 126400 Accounts Receivable 126400 - Your answer is partially correct. On March 12, Carla Vista paid the balance due to Flint. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Accounts Payable 746100 Cash 723817 22383 Sales Discounts

Answer 1

Purchases Transactions (Periodic system)

Journal

Date	Account title	Debit	Credit
March 2	Purchases	872,500
	Accounts payable - Flint cabinets		872,500
March 6	Accounts payable - Flint cabinets	126,400
	Purchase returns and allowances		126,400
March 12	Accounts payable - Flint cabinets	746,100
	Cash		723,717
	Purchase discount		22,383

Final amount due = Cost of goods purchased - Cost of goods returned

= 872,500 - 126,400

= $746,100

Discount amount = Final amount due x Discount percentage

= 746,100 x 3/10

= $22,383

Cash payment to be made = Final amount due - Discount amount

= 746,100 - 22,383

= $723,717

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