Question

Journalize the following transactions for Perez Company using the gross method of accounting for purchase discounts. Assume a perpetual inventory system. October 9 Purchased goods from Long Company on account, $6,000, terms 2/10, n/30. October 15 Returned merchandise to Long Company that was previously purchased on account, $600. October 20 Paid the amount due to Long Company. Date Account Title Debit Credit ✓ (Choose one) Accounts Payable Accounts Receivable Cash Cost of Goods Sold Purchase Discounts Last Freight Out Merchandise Inventory Prepaid Rent Rent Expense Sales Sales Discounts Sales Returns and Allowances Supplies Supplies Expense

Answer 1

Oct-09	Merchandise inventory	$        6,000
	Accounts payable--Long Company		$       6,000
	[To record purhcase of goods]
Oct-15	Accounts payable--Long Company	$            600
	Merchandise inventory		$           600
	[To record return of merchandise]
Oct-20	Accounts payable--Long company [6000-600]	$        5,400
	Cash		$       5,400
	[To record payment to Long company]