Question

Record the following transactions of J. Min Designs in a general journal. The company uses the perpetual inventory system. TRANSACTIONS DATE 2019 April 1 Purchased merchandise on credit from O'Rourke Fabricators, Invoice 885, $3,000, terms 1/10, n/30; freight of $20 prepaid by O'Rourke Fabricators and added to the invoice (total invoice amount, $3,020). Paid amount due to O'Rourke Fabricators for the purchase of April 1, less the 1 percent discount, Check 457. Purchased merchandise on credit from Kroll Company, Invoice 145, $1,250, terms 1/10, n/30; freight of $75 prepaid by Kroll and added to the invoice. Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $50. Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 1 percent discount, Check 470. 24

Answer 1

Date	Account titles & explanations					Debit	Credit
1-Apr	Merchandise inventory					3,020
	Accounts payable-O'Rourke						3,020
9-Apr	Accounts payable-O'Rourke					3,020
	Merchandise inventory			(3000*1%)			30
	cash						2990
15-Apr	Merchandise inventory					1325
	Accounts payable-Kroll						1,325
17-Apr	Accounts payable-Kroll					50
	Merchandise inventory						50
24-Apr	Accounts payable-Kroll			(1325-50)		1275
	Merchandise inventory			(1200*1%)			12
	cash			(1200*99%+75)			1263