Question

A company has the following transactions during March: March 3 Purchases inventory on account for $3,100, terms 3/10, n/30. March 5 Pays freight costs of $290 on inventory purchased on March 3. March 6 Returns inventory with a cost of $500. March 12 Pays the full amount due on March 3 purchase. March 29 Sells all inventory purchased on March 3 (less those returned on March 6) for $5,800 on account. tormiunt due on March 3 purchase the returned Record all transactions, assuming the company uses a perpetual inventory system. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record the purchase of inventory on account for $3,100, terms 3/10, n/30. Note: Enter debits before credits. Date March 03 General Journal Debit Credit Record entry View general journal Clear entry

Answer 1

		Debit	Credit
March 3	Inventory	3100
	Accounts Payable		3100
March 5	Inventory	290
	Cash		290
March 6	Accounts payable	500
	Inventory		500
March 12	Accounts payable	2600
	Inventory		78	=2600*3%
	Cash		2522
March 29	Account receivable	5800
	Sales revenue		5800
March 29	Costs of goods sold	2812		=3100+290-500-78
	Inventory		2812