Question

1) A merchandiser, following the perpetual inventory system, has the following transactions during August, 2019: Date Transaction Aug. 5 Purchased inventory on account Aug. 9 Paid for transportation of goods purchased Aug. 10 Returned defective merchandise to the seller Aug. 15 Paid for goods purchased on August 5 Amount $ 300,000 25.000 20.000 Credit terms of invoice are 2/15, n/45. Prepare journal entries for the above transactions. Omit explanations. 10 points DEBIT CRE

Answer 1

Date	Particulars			Debit	Credit
5-Aug	Merchandise Inventory			$ 300,000.00
	To Accounts Payable				$ 300,000.00
9-Aug	Merchandise Inventory			$   25,000.00
	To Cash				$   25,000.00
10-Aug	Accounts Payable			$   20,000.00
	To Merchandise Inventory				$   20,000.00
15-Aug	Accounts Payable			$ 280,000.00
	To Merchandise Inventory*				$     5,600.00
	To Cash				$ 274,400.00
	Discount Received = ($ 300000 - $ 20000) x 2%