Question

Saved mapter 4 1 Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system Book Nov. 5 Purchased 950 units of product at a cost of $12 per unit. Terms of the sale are 5/10, 1/60; the invoice is dated November 5. Nov. 7 Returned 40 defective units from the November 5 purchase and received full credit Nov. 15 Pald the amount due from the November 5 purchase, minus the return on November 7. References View transaction list Journal entry worksheet 1 Purchased 950 units of product at a cost of $12 per unit. Terms of the sale are 5/10, 1/60; the invoice is dated November 5. Debit Credit General Journal Nov 05 Prov 1 of 16 i Next >

Answer 1

Date	General Journal	Debit	Credit
5-Nov	Purchases	11400
	Accounts Payable		11400
7-Nov	Accounts Payable	480
	Purchase Returns		480
15-Nov	Accounts Payable	10920
	Cash		10374
	Discount Received		546

Purchases= 950*12= 11400

Returns = 40*12= 480

Payment to be made= 11400-480= 10920

Discount= 10920*5%= 546

Payment made= 10920-546=10374