Safari File Edit View History Bookmarks Window Help ezto.mheducation.com M6-6 Pr

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Safari File Edit View History Bookmarks Window Help ezto.mheducation.com M6-6 Preparing Journal Entries for Purchases, Purchase Discounts, and Purcha Assume Anderson's General Store bought, on credit, a truckload of Wholesaling costing $40,000. If the company was charged $820 in transportation cost by National Trucking. immediately retumed goods to American Whclesaling costing $2.900, and then took advantage of American Wholesaling's 2/10, n/30 purchase discount transactions, assuming Anderson's uses a perpotual inventory system. (If no entry is required for a transaction/event, the first account field.) View transaction list Journal entry worksheet Record the inventory purchased of $40,000 on account. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

Date Account debit credit 1 merchandise inventory 40000 Accounts payable 40000 [Inventory purchased on account] 2 merchandise inventory 820 Accounts payable 820 [being transportatiton cost incurred] 3 Accounts payable 2900 merchandise inventory 2900 [inventory returned] 4 Accounts payable [40000-2900] 37100 merchandise inventory   [37100*.02] 742 cash 36358 [being payment made within discount period]

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