Question

Record the following transactions of Allen Inc.: (Round your answers to 2 decimal places TRANSACTIONS DATE 2019 March 8 Purchased merchandise on credit from Alenikov Designs, Invoice 1091, list price $4,300, trade discounts of 20% and 10%; terms 1/10, n/30. 17 Paid the amount owed on the purchase of March 8 from Alenikov Designs, less the 1 percent discount, Check 185. View transaction list Journal entry worksheet Purchased merchandise on credit from Alenikov Designs, Invoice 1091, list price $4,300, trade discounts of 20% and 10%; terms 1/10, n/30. Note: Enter debits before credits.

Answer 1

Answer: Debit($) Credit($) 3096.00 General Journal Date Mar-08 Merchandise Inventory 3096.00 (4300*(1-0.20)*(1-0.10) Accounts Payable [To record credit purchase, Invoice No.1091 after trade discounts of 20% and 10%] Mar-17 Accounts Payable 3096.00 30.96 (3096*0.01) Discount Received Cash/Bank 3065.04 [To record payment of credit purchase and avaling discount]