Question

480 EX 6-8 Purchase-related transactions OBJ. 2 Journalize entries for the following related transactions of Greenville Heating & Air Com- pany: a. Purchased $57,000 of merchandise from Foster Co. on account, terms 2/10, n/30. b. Paid the amount owed on the invoice within the discount period. c. Discovered that $11,000 of the merchandise purchased in (a) was defective and returned items, receiving credit for $10,780 ($11,000 - ($11,000 X 2%)]. d. Purchased $6,300 of merchandise from Foster Co. on account, terms n/30. e. Received a refund from Foster Co. for return in (c) less the purchase in (d).

Answer 1

Journal - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View ♡ OT A1 A B с D E 1 Greenville Heating & Air Company, Journal Entries (As per Perpetual Inventory System) 2 3 4 Sr. No. Credit ($) Debit ($) 57,000.00 5 1 $ Accounts Titles & Explanation Inventory Accounts Payable - Foster Co. (to record Merchandise Purchased on terms 2/10, n/30) 6 $ 57,000.00 7 8 9 2 $ 57,000.00 10 Accounts Payable - Foster Co. Cash Inventory (to record Cash paid to Foster Co. and discount received at 2%) $ $ 55,860.00 1,140.00 11 12 13 3 $ 10,780.00 Accounts Payable - Foster co. Inventory (to record Purchase Return) $ 14 15 16 17 18 10,780.00 4 $ 6,300.00 19 Inventory Accounts Payable - Foster Co. (to record Purchase of Merchandise) $ 6,300.00 20 21 22 5 $ 4,480.00 Cash Accounts Payable - Foster Co. (to record refund received and accounts settled) $ 23 24 4,480.00 25 Sheet1 Sheet2 Sheet3 Sheet4 Sheets Sheet6 Sheet2 Sheets Sheet Sheet10 Sheet11 III Ready BO 120% - X 4:41 AM 19-Sep-20

Entries has been passed as per Perpetual Inventory System, if entries are required as per Periodic system or if any further queries are there please mention in comment box.

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