Question

Question 3 View Policies Current Attempt in Progress Presented below are transactions related to Coronado, Inc. May 10 Purchased goods billed at $16,400 subject to cash discount terms of 2/10./60. 11 Purchased goods billed at $15,500 subject to terms of 1/15,1/30. 19 Paid invoice of May 10. 24 Purchased goods billed at $10,600 subject to cash discount terms of 2/10,n/30. Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry for the account titles and enter for the amounts. Round answers to O decimal places, eg. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account This and Explanatics List of Accounts Assuming no purchase or payment transactions other than those given above, prepare the adjusting entry required on May 31 if financial statements are to be prepared as of that date. (If no entry is required, select "No entry for the account titles and enter for the amounts. Round answers to decimal places, e s. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Date Account Titles and Explanation May 31

Answer 1

Answer a.

Date	Accounts Titles and Explanation	Debit	Credit
May 10	Purchases ($16,400 * 98%)	16,072
	Accounts Payable		16,072
May 11	Purchases ($15,500 * 99 %)	15,345
	Accounts Payable		15,345
May 19	Accounts Payable	16,072
	Cash		16,072
May 24	Purchases ($10,600 * 98%)	10,388
	Accounts Payable		10,388

Answer b.

Date	Accounts Titles and Explanation	Debit	Credit
May 31	Purchase Discount Lost ($15,500 * 1 %)	155
	Accounts Payable		155