Question

Purchase-Related Transactions Journalize entries for the following related transactions of Manville Heating & Air Company: 

a. Purchased $45,000 of merchandise from Wright Co. on account, terms 2/10, n/30. 

b. Paid the amount owed on the invoice within the discount period. 

c. Discovered that $9,000 of the merchandise purchased in (a) was defective and returned items, receiving credit. 

d. Purchased $7,400 of merchandise from Wright Co. on account, terms n/30. e. Received a refund from Wright Co. for return in (c) less the purchase in (d).

Answer 1

Date	General Journal	Debit	Credit
a.	Merchandise Inventory[$45,000 - ($45,000 * 2%)]	$44,100
	Accounts Payable-Wright Co.		$44,100
b.	Accounts Payable-Wright Co.	$44,100
	Cash		$44,100
c.	Accounts Payable-Wright Co.[$9,000 - ($9,000 * 2%)]	$8,820
	Merchandise Inventory		$8,820
d.	Merchandise Inventory	$7,400
	Accounts Payable-Wright Co.		$7,400
e.	Cash	$1,420
	Accounts Payable-Wright Co.		$1,420