Question

6) Johnnycake Restaurant uses a periodic inventory system and the gross method of accounting for purchases. Prepare general journal entries to record the following transactions for Johnnycake:

Aug. 10	Johnnycake purchased merchandise on credit from Foster Foods for $9,000, terms 2/10, n/30, FOB destination. Transportation costs of $350 were paid by Foster.
12	Johnnycake returned $600 of merchandise from the August 10 purchase.
19	Johnnycake paid Foster for the August 10 purchase.

Answer 1

the following are the journal entries:

date	accounts	debit	credit
aug 10	Purchases a/c	9,350
	.......To accounts payable		9,350
aug 12	accounts payable a/c	600
	........To purchases a/c		600
aug 19	accounts payable	8,750
	............To cash a/c		8,582
	............To discount received on purchases		168

note : discount amount = (9000-600)*2% =>168.

cash received = (8400 - 168) + 350 =>8,582.