Question

Assignment 5-A REQUIRED Send to Gradebook Next <Prev Question 5 --/2 View Policies Current Attempt in Progress This information relates to Teal Mountain Co. On April 5, purchased merchandise from Sandhill Company for $25.100, terms 2/10, n/30. On April 6, paid freight costs of $640 on merchandise purchased from Sandhill On April 7, purchased equipment on account for $32.900. On April 8, returned $4,800 of April 5 merchandise to Sandhill Company On April 15, paid the amount due to Sandhill Company in full 1. 2. 3. 4. 5. (a) Prepare the journal entries to record the transactions listed above on Teal Mountain Co.s books. Teal Mountain Co. uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually)

Answer 1

Perpetual Journal entries:

In the books of Teal Mountain co.

Date	Account Title & Explanation	Debit($)	Credit($)
April 05	Merchandise Inventory	25100
	Account Payable – Sandhill Company		25100
	(Purchased Merchandise inventory on credit)
April 06	Merchandise Inventory	640
	Cash		640
	(Paid Freight cost on merchandise purchased)
April 07	Equipment Account	32900
	Account Payable		32900
	(Equipment Purchased on credit)
April 08	Account Payable – Sandhill Company	4800
	Merchandise Inventory		4800
	(Inventory Return to Sandhill Company)
April 15	Account Payable – Sandhill Company	20300
	Cash		19894
	Merchandise Inventory		406
	(Final Payment made to Sandhill Company ,net amount payable to sandhill company is 25100 - 4800 = 20300)