Question

Le R_29 Journalizing purchase transactions-periodic inventory system Lawrence Appliances had the following purchase transactions. Journalize all necessary transactions using the periodic inventory system. Explanations are not required. Sep.4 Purchased inventory of $6,900 on account from Max Appliance Wholesale, an appliance wholesaler. Terms were 3/15, n/30, FOB shipping point. 4 Paid freight charges, $480. 10 Returned $300 of inventory to Max. 17 Paid Max Appliance Wholesale, less return and discount. 20 Purchased inventory of $3,900 on account from MY Appliance, an appliance wholesaler. Terms were 1/10, n/45, FOB destination. 22 Received a $400 allowance from MY Appliance for damaged but usable goods. 29 Paid MY Appliance, less allowance and discount.

Answer 1

Ans Date Particulars Debit Credit 6900 04-Sep Inventory Dr Accounts Payable 6900 (being inventory purchased on credit) 04-Sep Freight Expenses 480 Dr Cash 480 (being expenses met) 10-Sep Accounts Payable Dr 300 Inventory 300 (being goods returned) 6600 17-Sep Accounts Payable Dr 5610 (Balanceing figure) Cash 990 (6600*15% Discount on Purchase (being cash paid for purchase)

20-Sep Inventory Dr 3900 Accounts Payable 3900 (being inventory purchased on credit) 22-Sep Accounts Payable Dr 400 Allowance on Purchase 300 (being allowance against purchase received) 29-Sep Accounts Payable Dr 3500 Cash 3465 35 (3500*1%) Discount on Purchase |(being cash paid for purchase)