Question

TRANSACTIONS DATE 2019 Purchased merchandise on credit from O'Rourke Fabricators, Invoice 885, $3,000, terms 1/10, n/30; freight of $20 prepaid by O'Rourke Fabricators and added to the invoice (total invoice amount, $3,020) Paid amount due to 0'Rourke Fabricators for the purchase of April 1, less the 1 percent discount, Check 457 Purchased merchandise on credit from Kroll Company, Invoice 145, $1,250, terms 1/10, n/30; freight of $75 prepaid by Kroll and added to the invoice. Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $50. 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. April 1 15 17 24 View transaction list Journal entry worksheet 1 2 4 5 Purchased merchandise on credit from O'Rourke Fabricators, Invoice 885, $3,000, terms 1/10, n/30; freight of $20 prepaid by O'Rourke Fabricators and added to the invoice (total invoice amount, $3,020). Note: Enter debits before credits. <Prev 2 of 8

Answer 1

Solution:

Journal Entries
Date	Particulars	Debit	Credit
1-Apr	Inventory Dr	$3,020.00
	To Accounts payable - O' rourke Fabricator		$3,020.00
	(To record inventory purchase on account)
9-Apr	Accounts payable - O' rourke Fabricator Dr	$3,020.00
	To Inventory		$30.00
	To Cash		$2,990.00
	(To record payment)
15-Apr	Inventory Dr	$1,325.00
	To Accounts payable - Kroll		$1,325.00
	(To record inventory purchase on account)
17-Apr	Accounts payable - Kroll Dr	$50.00
	To Inventory		$50.00
	(To record purchase return)
24-Apr	Accounts payable - Kroll Dr	$1,275.00
	To Inventory (1200*1%)		$12.00
	To Cash		$1,263.00
	(To record payment)