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Journalizing purchase transactions from an invoice Kingston Tires received the f

ID: 2426256 • Letter: J

Question

Journalizing purchase transactions from an invoice

Kingston Tires received the following invoice from a supplier (Fields Distribution, Inc.):

                                                       FIELDS DISTRIBUTION, INC
                                                            7290 S. PROSPECT STREET
                                                               RAVENNA, OH 44266

Invoice date September 23,2015

Sold to: Kingston Tires
             6678 Diamond Avenue
             Ravenna, OH 44266

Payment terms: 1/10, n/30

Description

Quantity shipped

Price

Amount

D39-X4 Radials

4

$38.12

$152.48

M223 Belted-bias

10

48.84

428.40

Q92 Truck tires

6

58.12

348.72

Total

$929.60

Due date

Amount

October 3, 2015

$920.30

October 4 through October 23, 2015

$929.60

Requirements

Journalize the transaction required by Kingston Tires on September 23, 2015. Do the round numbers to the nearest whole dollar. Assume tires are purchased on account.

Journalize the return on Kingston’s books on September 28, 2015, of the D39-X4 Radials, which were ordered by mistake.do not round numbers to the nearest whole dollar.

Journalize the payment on October 1,2015, to Fields Distribution, Inc. Do not round numbers to the nearest whole dollar.

Invoice date September 23,2015

Sold to: Kingston Tires
             6678 Diamond Avenue
             Ravenna, OH 44266

Payment terms: 1/10, n/30

Description

Quantity shipped

Price

Amount

D39-X4 Radials

4

$38.12

$152.48

M223 Belted-bias

10

48.84

428.40

Q92 Truck tires

6

58.12

348.72

Total

$929.60

Due date

Amount

October 3, 2015

$920.30

October 4 through October 23, 2015

$929.60

Explanation / Answer

23/09/2015 Purchase 929.6            To Fields Distribution Inc. 929.6 28/09/2015 Fields Distribution Inc. 152.48           To Purchase Return 152.48 01/10/2015 Fields Distribution Inc. 777.12          To Cash Discount 7.7700           To Cash 769.350