Question

e: ID: A 6. Demmler Company entered into the transactions listed below. In the journal provided, prepare Demmler's journal entries, assuming use of the PERIODIC inventory system. Show necessary calculations. Oct. 3 Purchased $1,500 of merchandise on credit, terms 2/10, n/30 from Smith Co. 6 Returned $300 of the goods purchased from Smith Co. 12 Paid Smith Co.. 13 Sold goods on credit for $1,000, terms 3/10, n/30 to Jones Co... 14 The Jones Co. returned $200 of the goods. 23 Received payment from Jones Co.

Answer 1

Date	Accounts title	Debit $	Credit $
Oct 3	Purchase	1500
	Accounts Payable		1500
	Purchased merchandise on account from Smith Co. terms 2/10, n/30
Oct 6	Accounts Payable	300
	Purchases returns and allowances		300
	Returned portion of merchandise purchased from smith company.
Oct 12	Accounts Payable	1200
	Purchase discounts	24
	Cash (1500-300) x 98%		1176
	Paid smith company after discount
Oct 13	Accounts Receivable	1000
	Sales		1000
	(Sold merchandise on account to Jones co. terms 3/10, n/30
Oct 14	Sales Returns and allowances	200
	Accounts Receivable		200
	Accepted return of merchandise from Jones Co.
Oct 23	Cash(1000-200) x 97%	776
	Sales discounts	24
	Accounts receivable		800
	Received payment from Smith co.