Question

NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices € and cash payment activities: DATE TRANSACTIONS 2019 June 1 Issued Check 101 to purchase merchandise, $4,500. 3 Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30. 5 Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30. 9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102. 10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5. 11 Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, 5/30. 14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103. 15 Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30. 20 Issued Check 104 to purchase merchandise, $3,000. 25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.. 30 Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30. Required: Journalize the transactions in a general journal. Analyze: What was the amount of trade discounts received on the June 15 purchase from Park Research? Complete this question by entering your answers in the tabs below. General Journal Analyze < Prev 8 of 8 Next

Answer 1

Answer Credit Journal Entry Date General Journal June, 01 2019 Purchases Cash (To record the purchases merchandise) Debit $4,500 $4,500 June, 03 $1,700 Purchases Accounts Payable (BioCenter Inc.) (To record the purchases merchandise on account) $1,700 June, 05 $5,850 $110 Purchases Freight Accounts Payable (New Concepts Corporation) (To record the purchases merchandise on account) $5,960 June, 09 $1,700 Accounts Payable (BioCenter Inc.) Purchases Discounts ($1,700 x 2%) Cash ($1,700 - $34) (To record the Paid amount due to BioCenter Inc) $34 $1,666 $150 Accounts Payable (New Concepts Corporation) Purchases Returns and Allowances (To record the received credit memorandum purchased on June 5) $150

June, 11 $1,680 Purchases Accounts Payable (BioCenter Inc) To record the purchases merchandise on account) $1,680 $5,810 Accounts Payable (New Concepts Corporation) ($5,960 - $150) Purchases Discounts [($5,850 - $150) x 2%] Cash ($5,810 - $114) (To record the Paid amount owed) $114 $5,696 June, 15 $6,256 Purchases [($9,200 - $1,840) - $1,104) Accounts Payable (Park Research) (To record the purchases merchandise on account) $6,256 June, 20 $3,000 Purchases Cash To record the purchases merchandise) $3,000 June, 25 $280 Cash Purchases Returns and Allowances (To record Received cash for return of defective merchandise) $280

June, 30 $3,200 $85 Purchases Freight Accounts Payable (New Concepts Corporation) (To record the purchases merchandise on account) $3,285 Explanations June, 15 Purchase Less: Trade Discount ($9,200 x 20%) $9,200 ($1,840) $7,360 ($1,104) $6,256 Less: Trade Discount ($7,360 x 15%)