QS 5-3 Recording purchases-perpetual system L.O. P1 Mar. 5 Purchased 500 units o

Question

QS 5-3 Recording purchases-perpetual system L.O. P1 Mar. 5 Purchased 500 units of product at a cost of $5 per unit. Terms of the sale are 2/10, n/60; the invoice is dated March 5. Mar. 7 Returned 50 defective units from the March 5 purchase and received full credit. Mar. 15 Paid the amount due from the March 5 purchase, less the return on March 7. Prepare journal entries to record each of the above purchases transactions of a merchandising company. Assume a perpetual inventory system. (Omit the "$" sign in your response.) Date General Journal Debit Credit Mar. 5 Mar. 7 Mar. 15

Explanation / Answer

March 5 , debit -Merchandise Inventory - 2500 , credit - Account payable - 2500 ,

March 7, debit - account payable - 250 credit -product - 250

March 15, debit - account payable -2250, credit- Merchandise Inventori-50, credit -Cash - 2200

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