Question

Show All Your Works For Your Calculations: Calculate Debit for Accounts payable and Inventory And Calculate Credit for Cash below * More Info Jul 4 Wholesale Furnishings purchased $8,000 of merchandise from M and P Furniture Warehouse on account. Terms, 1/15, n/30, FOB shipping point. The goods cost M and P Furniture Warehouse $3,100. 7 Wholesale Furnishings paid a $100 freight bill for delivery of the goods purchased on July 4. 10 Wholesale Furnishings returned $1,100 of the merchandise purchased on July 4. The goods cost M and P Furniture Warehouse $400. 18 Wholesale Furnishings paid $1,800 of the July 4 invoice less the discount. 31 Wholesale Furnishings paid the remaining amount owed on the July 4 invoice. Print Done Jul 31: Wholesale Furnishings paid the remaining amount owed on the July 4 invoice. Journal Entry Date Debit Credit Jul Accounts 31|Accounts payable Inventory Cash

Answer 1

Account Payable Inventory $6800 $1100 Cash $5100 for * Inventory is credited the merchandise retum * As payment is made after Is days hence not eligible for discount • So, Accounts payable $8000-$1800 E & 6200