Question

1. On April 5. purchased merchandise from Pharoah Company for $26,000, terms 3/10, 1/30. 2. On April 6. paid freight costs of $550 on merchandise purchased from Pharoah. 3. On April 7. purchased equipment on account for $30,700. 4. On April 8, returned $5.500 of April 5 merchandise to Pharoah Company 5. On April 15, paid the amount due to Pharoah Company in full. Prepare the journal entries to record the transactions listed above on Shamrock Co.'s books. Shamrock Co. uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles No. Date Account Titles and Explanation Debit Credit 3. Assume that Shamrock Co. paid the balance due to Pharoah Company on May 4 instead of April 15. Prepare the journal entry to record this payment. (if no entry is required, select "No Entry" for the accou Date Account Titles and Explanation Debit Credit May 4

Answer 1

1) Journal entry

Date	account and explanation	Debit	Credit
Apr 5	Merchandise inventory	26000
	Account payable		26000
Apr 6	Merchandise inventory	550
	Cash		550
Apr 7	Equipment	30700
	Account payable		30700
Apr 8	Account payable	5500
	Merchandise inventory		5500
Apr 15	Account payable (26000-5500)	20500
	Cash (20500*97%)		19885
	Merchandise inventory		615

b) Journal entry

Date	account and explanation	Debit	Credit
May 4	Account payable	20500
	Cash		20500