Question

8. Graded Homework Assignment Saved DATE TRANSACTIONS 2019 Feb. 10 Purchased merchandise for $5,000 from Schmidt, Ine. Invoice 1980, terms 1/10, n/30. 13 Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10. 19 Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010. Schmidt, Inc. DATE TRANSACTIONS 2019 Feb. 10 Sold merchandise for $5,000 on account to Bushard Company, Invoice 1980, terms 1/10, n/30. 13 Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $200 that was returned the goods were purchased on Invoice 1980, dated February 10. 19 Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010. Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc. ences Complete this question by entering your answers in the tabs below. | Bushard Schmidt Inc

Answer 1

Answer Credit 1 Bushard Company Date General Journal Feb, 10 Purchases Accounts Payable (To record the purchases) Debit $5,000 $5,000 Feb, 13 $200 Accounts Payable Purchase Return (To record the purchase return) $200 Feb, 19 $4,800 Accounts Payable ($5,000 - $200) Cash ($4,800 x 99%) Purchase Discount ($4,800 x 1%) (To record the amount payment) $4,752 $48

2 Schmidt Inc. Date Feb, 10 | Credit Debit $5,000 General Journal Accounts Receivable Sales (To record the Sales) $5,000 Feb, 13 $200 Sales Return Accounts Receivable (To record the Interest expanses) $200 Feb, 19 $4,752 Cash [($5,000 - $200) 99%] Sales Discount [($5,000 - $200) x 1%] Accounts Receivable (To record the amount received) $48 $4,800