11 ex05-170 Travis Company purchased merchandise on account from a supplier for

Question

11 ex05-170

Travis Company purchased merchandise on account from a supplier for $5,700, terms 2/10, net 30 on December 26. Travis Company paid for the merchandise on December 31, within the discount period.

Required:

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JOURNAL

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Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.

Record the journal entries on each transaction. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

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Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Dec 26 Merchandise inventory 5700      Account payabale 5700 (To record purchase) Dec 31 Account payable 5700       Cash 5586        Merchandise inventory (5700*2%) 114 (To record amount paid)

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