Urgent help on accounting homework please? Witten Company uses a periodic invent

Question

Urgent help on accounting homework please?

Witten Company uses a periodic inventory system and on October 3, 20X4, purchased inventory on account for $20,000. The terms of the purchase were 3/10, n/45. Shipping was $800, FOB destination. On October 4, the inventory was inspected, and it was discovered that some was damaged. The seller granted Witten Company a $600 allowance. On October 11, Witten Company paid the appropriate amount. Prepare the journal entries for each of the events noted above.

Explanation / Answer

Purcahses Account ...................Dr 20000

Freight Account ..........................Dr 800

To Credior 20000

To cash 800

( Being Purchase Booked )

Creditor account .....................Dr 600

To Purchases Return 600

( Being Goods returned )

Creditors account .....................Dr 20000

To Cash 18818

To discount Income 1182

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