Question

Purchase-Related Transactions Journalize entries for the following related transactions of Manville Heating & Air Company: a. Purchased $39,000 of merchandise from Wright Co. on account, terms 2/10, n/30. Merchandise Inventory Accounts Payable-Wright Co. Paid the amount owed on the invoice within the discount period. Accounts Payable-Wright Co. Wright Co. O Cash c. Discovered that $7,800 of the merchandise purchased in (a) was defective and returned items, receiving credit. Accounts Payable-Wright Co. O Merchandise Inventory d. Purchased $6,400 of merchandise from Wright Co on account, terms n/30. Merchandise Inventory Accounts Payable-Wright Co. S h e e. Received a refund from Wright Co. for return in (c) less the purchase in (d). Cash Accounts Payable-Wright Co.

Answer 1

a) Purchared $39,000 of merchandise from Wright Co. on account Serms 2110, 1/30. Merchandise Poverloay f/38 2201 - Accounts Payable-' _ Wright co. - $38220 B) Paid the amount owed on the invoice within the discount perrods Accounl payable-Wrighd.co. $(38220] - Cash - 5735220) c) Discovered thaed $7800 of the merchandise purchased in (a) was defective and returned élems, receiving crediti Accounts payable-Wright co. $176447 -- Merchandise inventory - $[7644 ol) Purchased $ 6400 of merchandise from wilight co. on account sterms n30. Merchandise inventony $164001 - Accounts Payable- Wayanad - 6400 e) Received a fie fond from kloright com fove rreteren I encen less the purchase in (d) : Cash . 91244 m . Accounts payable-Wright.co. — $1244

Explanations ; Qi Merchandise inventory = 79 39000 - (€ 39000 %2%7 o § 39000 - $780 $38220 | e. Accounts paybile. Wright co. - [87800 - ($1800 x 27.97 - ($ 7800 - $ 156) a $7644 e Cash = ($ 7644- $ 6400) - $1244