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Journalizing purchase transactions Hayes Jewelers has the following purchase tra

ID: 2426065 • Letter: J

Question

Journalizing purchase transactions

Hayes Jewelers has the following purchase transactions. Journalize all necessary transitions. Explanations are not required.

Jun 20

Purchase inventory of $5,800 on account from Slater Diamonds, a jewelry importer. Terms were 3/15, n/45, FOB shipping point.

20

Paid freight chargers, $400

Jul 4

Returned $800 of inventory to slater.

14

Paid Slater Diamonds, less return

16

Purchased inventory of $3,480 on account from Schmitt Diamonds, a jewelry importer. Terms were 2/10, n/EOM, n/45, FOB destination.

18

Received a $480 allowance from Schmitt for damaged but usable goods.

24

Paid Schmitt Diamonds, less allowance and discount.

Jun 20

Purchase inventory of $5,800 on account from Slater Diamonds, a jewelry importer. Terms were 3/15, n/45, FOB shipping point.

20

Paid freight chargers, $400

Jul 4

Returned $800 of inventory to slater.

14

Paid Slater Diamonds, less return

16

Purchased inventory of $3,480 on account from Schmitt Diamonds, a jewelry importer. Terms were 2/10, n/EOM, n/45, FOB destination.

18

Received a $480 allowance from Schmitt for damaged but usable goods.

24

Paid Schmitt Diamonds, less allowance and discount.

Explanation / Answer

date account title debit($) Credit ($) Jun-20 Inventory 5800 Accounts payable 5800 Jun-20 Freight in expense 400 Cash 400 Jul-04 Accounts payable 800 Inventory 800 Jul-14 Accounts Payable 5000 Cash 5000 Jul-16 Inventory 3480 Accounts payable 3480 Jul-18 Accounts payable 480 Allowance received 480 Jul-24 Accounts payable 3000 Discount received 60 Cash 2940