Question

1 On April 5,purchased merchandlse from Sunland Company for $26,400, terms 4/10, n/30 2 On April 6, pald freight costs of $590 on merchandlse purchased from Sunland. 3 On April 7,purchased equipment on account for $33,900 On April 8,returned $5,200 of April 5 merchandise to Sunland Company. 4. On April 15, paid the amount due to Sunland Company in fll 5. (a) Prepare the joumal entries to record the transactions listed above on Splish Brothers Co.'s books. Splish Brothers Co.uses a perpetual inventory system. (if no entry is required, select "No Entry are automatically indented when arnount is entered. Do nat indent manually for the occount titles and enter 0for the amounts. Credit account titles Account Titles and Explanation Debit Credit No. Date 1. 2. 3. 4. 5 (b) Assume that Splish Brothers Co. paid the balance due to Sunland Company an May 4 instead of April 15, Prepare thejournal entry to record this payment. (If no entry is required, select "No Entry titles are automatically indented when amount is entered. Donot indent manually for the account titles and enter O for the amounts, Credit account Debit Date Account Titles and Explanation Credit May 4

Answer 1

1) Journal entry

Date	account and explanation	Debit	Credit
Apr 5	Merchandise inventory	26400
	Account payable		26400
Apr 6	Merchandise inventory	590
	Cash		590
Apr 7	Equipment	33900
	Account payable		33900
Apr 8	Account payable	5200
	Merchandise inventory		5200
Apr 15	Account payable (26400-5200)	21200
	Cash (21200*96%)		20352
	Merchandise inventory		848

b) Journal entry

Date	account and explanation	Debit	Credit
May 4	Account payable (26400-5200)	21200
	Cash		21200