Question

Accounting questions

31. Slater Supply uses a periodic inventory system During May, the following tra tons and Slater has the following chart of accounts Cash, Accounts Receivable, In tory &Allonwtces ts Payable, Slater Supply ,Purchases Sold, Freight Out, Salary Freight In, Sales, Sal a s& Expense Allowaces, Sales Cood G s 13 Purchased 6 motors for a total cost of$300 from Nen Company, terms 2/10,N/30 16 Returned 1 defective motor for $50 to Nen and cost the seller $30 Мay The motors cost Nen Company S180. Мay Мау 22 Paid Nen Company in full. Instructions: Journalize the May transactions for Slater Supply, You may omit explanations Credit Date Debit Account Name Version 2 Page 6

Answer 1

Purchases Transactions (Periodic system)

Journal

Date	Account title	Debit	Credit
May 13	Purchases	$300
	Accounts payable- Nen Company		$300
May 16	Accounts payable- Nen Company	$50
	Purchase returns and allowances		$50
May 22	Accounts payable - Nen Company	$300
	Cash		$245
	Purchase discount		$5

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

= 300 - 50

= $250

Discount amount = Final amount due x Discount percentage

= 250 x 2/100

= $5

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

= 250-5

= $245

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