Question

upuud HUMUTLU puce provucu at the DOLOMOT the question box as your hitted answer to that question. Question 2 24 pts Cheese Factory uses a perpetual inventory system. The following activities occurred during May: • May 2 - Cheese Factory purchased $45,000 worth of inventory, on credit terms 3/10 n/30. . May 5 - Cheese Factory returned $5,000 worth of that inventory to the supplier. • May 9 - Cheese Factory paid for the inventory, taking advantage of all available discounts. Required: Prepare the journal entries to record the transactions above. Use the MSWord link for the table to write your journal entries. After you have written the journal entries on the table in the MSWord document provided, put your name below the table on the document, save the document and then upload it to this problem in the upload space provided at the bottom of this box. MSWord Journal Entry Forme

Answer 1

Solution:

Journal Entries - Cheese Factory
Date	Particulars	Debit	Credit
2-May	Inventory Dr	$45,000.00
	To Accounts payable		$45,000.00
	(To record purchase of inventory on account)
5-May	Accounts payable Dr	$5,000.00
	To Inventory		$5,000.00
	(To record purchase returns)
9-May	Accounts payable Dr	$40,000.00
	To Cash		$38,800.00
	To Inventory		$1,200.00
	(To record payment to supplier)