On OctoberOctober ?15, 20162016?, MartinMartin?\'s Department Store purchased $
ID: 2400508 • Letter: O
Question
On
OctoberOctober
?15,
20162016?,
MartinMartin?'s
Department Store purchased
$ 7 comma 100$7,100
of inventory on account from one of its suppliers. Terms were
55?/15,
?n/45, FOB shipping point. On
OctoberOctober
?17,
MartinMartin?'s
Department Store paid freight charges of
$ 275$275
related to the delivery of the goods purchased on
OctoberOctober
15. Upon receiving the? goods,
MartinMartin?'s
Department Store checked the order and found
$ 1 comma 400$1,400
of unsuitable? merchandise, which was returned to the supplier on
OctoberOctober
21.?Then, on
OctoberOctober
?29,
MartinMartin?'s
Department Store paid the invoice.
Requirement
1.
MartinMartin?'s
Start by journalizing the
OctoberOctober
?15,
20162016
purchase of inventory on account.
Journal Entry
Date
Accounts
Debit
Credit
Oct
15
?Next, journalize the payment of freight charges on
OctoberOctober
?17,
20162016.
Journal Entry
Date
Accounts
Debit
Credit
Oct
17
Now journalize the return of unsuitable merchandise on
OctoberOctober
?21,
20162016.
Journal Entry
Date
Accounts
Debit
Credit
Oct
21
?Finally, journalize the payment on
OctoberOctober
?29,
20162016.
Journal Entry
Date
Accounts
Debit
Credit
Oct
29
1.
Journalize all necessary transactions forMartinMartin?'s
Department Store. Omit explanations. ?(Record debits? first, then credits. Exclude explanations from any journal? entries.)Explanation / Answer
Journal entry :
Date account & explanation debit credit Oct 15 Merchandise inventory 7100 Account payable 7100 (To record purchase) Oct 17 Merchandise inventory 275 Cash 275 (To record freight paid) Oct 21 Account payable 1400 Merchandise inventory 1400 (To record purchase return) Oct 29 Account payable (7100-1400) 5700 Cash 5700 (To record amount paid)Related Questions
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