Question

The following information applies to the questions displayed below) Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October Oct 2 Purchased merchandise ato $3.000 price, invoice dated October 2. terms 2/10, 1/30. 10 Received a $500 credit memorandum (at full invoice price) for the return of merchandise that it purchased on October 2. 17 Purchased merchandise at a $5,400 price, invoice dated October 17, terms 2/10, n/30. 27 Paid for the merchandise purchased on October 17, less the discount 31 Paid for the merchandise purchased on October 2. Payment was delayed because the invoice was mistakenly filed for payment today. This error coused the discount to be lost 300 points (a) Prepare entries to record the above transactions assuming that Piere Imports records invoices at gross Bmounts View transaction list Journal entry worksheet 1 2 3 4 5 Purchased merchandise at a $3,000 price, Invoice dated October 2, terms 2/10, 1/30. Note: Enter debites before credits Date General Journa Debit Credit Oct 02 Record entry Clear entry View general joumal

Answer 1

Answer
Journal Entry
Date	Particulars	Debit	Credit
02-Oct	Merchandise Inventory	$     3,000
	Accounts Payable		$     3,000
	( To Record the purchase of inventory)
10-Oct	Accounts Payable	$        500
	Merchandise Inventory		$        500
	(To record the credit memo )
17-Oct	Merchandise Inventory	$     5,400
	Accounts Payable		$     5,400
	(To Record the purchase of inventory)
27-Oct	Accounts Payable	$     5,400
	Cash ($5400 X 98%)		$     5,310
	Merchandise Inventory ($4500 X 2%)		$          90
	(To record the amount paid)
31-Oct	Accounts Payable	$     2,500
	Cash		$     2,500
	(To record the amount paid)