Question

Record the following transactions of J. Min Designs in a general journal. The company uses the perpetual inventory system. DATE TRANSACTIONS 2019 April 1 Purchased merchandise on credit from O'Rourke Fabricators, Invoice 885, $3,800, terms 1/10, n/30; freight of $100 prepaid by O'Rourke Fabricators and added to the invoice (total invoice amount, $3,900). 9 Paid amount due to O'Rourke Fabricators for the purchase of April 1, less the 1 percent discount, Cheek 457. 15 Purchased merchandise on credit from Kroll Company, Invoice 145, $2,050, terms 1/10, n/30; freight of $155 prepaid by Kroll and added to the invoice. 17 Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $130. 24 Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 1 percent discount, Check 470. Record these transactions in a general journal. (Round final answers to the nearest whole dollar value.) View transaction list View journal entry worksheet

Answer 1

Date	Account title	Debit	credit
2019
April 1	Merchandise inventory	3900
	Accounts payable-O'Rourke fabricators		3900
April 9	Accounts payable -O'Rourke fabricators	3900
	Merchandise inventory [3800*.01]		39
	cash		3861
April 15	Merchandise inventory	2205
	Accounts payable -Kroll company [2050+155]		2205
April 17	Accounts payable -Kroll company	130
	Merchandise inventory		130
April 24	Accounts payable -Kroll company [2205-130]	2075
	Merchandise inventory [(2050-130)*.01]		19
	cash		2056

**Purchase discount is not available on Freight amount.