Question

Prepare journal entries to record each of the following transactions or a mercnanaising company. I ne company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 1,450 units of product at a cost of $40 per unit. Terms of the sale are 3/10, 1/60; the invoice is dated November 5. Nov. 7 Returned 30 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, minus the return on November 7. View transaction list Journal entry worksheet 3 Pald the amount due from the November 5 purchase, minus the return on November 7 Note: Enter debits before coedits Date Credit Nov 15 General Journal Accounts payable Cash Sales discounts Debit 56.800 55,664 1,136 < Prey 3 of 10 Next >

Answer 1

Date	Accounts	Debit	Credit
Nov 5	Merchandise Inventory	58000
	Accounts Payable		58000
	(To record purchase of inventory)
Nov 7	Accounts payable	1200
	Merchandise inventory		1200
	(To record return of goods)
Nov 15	Accounts payable	56800
	Discount recieved		1704
	Cash		55096
	(To record payments after discount)

Working notes:

Discount amount = 56800 x 3% = 1704

Cash amount = 56800 - 1704 = 55096