2 (Chapter 6-9) Dung the mnths of Januagy and February Axe Corporation purchased

Question

2 (Chapter 6-9) Dung the mnths of Januagy and February Axe Corporation purchased goods from three supplers. The sequence of events was as follows Jan. 6 Purchased goods for s2.700 from Green with terms 3/10, n/30 6 Purchased goods from Munoz for $2 400 with terms 3/10, n/30. 14 Paid Green in full. Feb, 2 Paid Munoz in full. 28 Purchased goods for $1.100 from Reynolds with terms 310, n/45 Required: Prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Date al Journal De Jan.6 Inventory 2,700

Explanation / Answer

Required journal entries:

Date General Journal Debit Credit Jan 6 Inventory $2,700 ...........To Accounts payable $2,700 (goods purchased from Green) Jan 6 Inventory a/c $2,400 ............To Accounts payable a//c $2,400 (goods purchased from Munoz) Jan 14 Accounts payable a/c $2,619 ............To Cash a/c $2,619 (paid to green in full and discount availed $2700*3%=>$81) Jan 14 Accounts payable a/c $81 ............To Inventory a/c $81 (discount is reduced from inventory balance) Feb 2 Accounts payable a/c $2,400 . ..............To Cash a/c $2,400 (amount is paid after discount period) Feb 28 Inventory a/c $1,100 ............TO Accounts Payable a/c $1,100

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