Question

Record the following transactions in general journal form using the periodic inventory system. If an amount does not require an entry, leave it blank. Round your answers to the nearest cent.

June	5	Sold merchandise on account to Wilson, Inc., $520; terms 1/10, n/30.
	12	Bought merchandise on account from Mastercraft Company, $425; terms 2/10, n/45; FOB shipping point.
	15	Paid Alliance Freight Lines for freight charges on merchandise purchased from Mastercraft Company, $45.
	15	Received full payment from Wilson, Inc.
	20	Received a credit memo from Mastercraft Company for defective merchandise returned, $75.
	25	Paid Mastercraft Company in full within the discount period.
	29	Bought merchandise on account from Boze Industries, $1,090; terms 1/15, n/30; freight prepaid and added to the invoice, $52 (total $1,142).

GENERAL JOURNAL					PAGE
DATE	DESCRIPTION		POST. REF.	DEBIT	CREDIT
20-- June 5
	Sold merchandise to Wilson, Inc., terms 1/10, n/30.
June 12
	Purchased merchandise from Mastercraft Company, terms 2/10, n/45.
June 15
	Paid freight bill on purchase from Mastercraft Company.
June 15
	Received payment in full.
June 20
	Received credit memo for defective merchandise.
June 25
	Paid account in full.
June 29
	Purchased merchandise from Boze Industries, terms 1/15, n/30.

Answer 1

General Journal Debit Credit Date Accounts Receivable-Wilson, Inc. June 05 520 Sales 520 Purchases June 12 425 Accounts Payable-Mastercraft Company 425 Freight-In June 15 45 Cash 45 Cash June 15 514.80 Sales Discount ($520 *1%) 5.20 Accounts Receivable-Wilson, Inc. 520 Accounts Payable-Mastercraft Company June 20 75 Purchase Returns and Allowances 75 Accounts Payable-Mastercraft Company June 25 350 Purchase Discounts ($350 2%) 7 Cash 343 Purchases 1,090 June 29 Freight-In 52 Accounts Payable-Boze Industries 1,142