Presented below are transactions related to Cullumber, Inc. Purchased goods bill

Question

Presented below are transactions related to Cullumber, Inc.

Purchased goods billed at $14,000 subject to cash discount terms of 2/10, n/30.

Assuming no purchase or payment transactions other than those given above, prepare the adjusting entry required on May 31 if financial statements are to be prepared as of that date. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

May 31

May 10 Purchased goods billed at $11,900 subject to cash discount terms of 2/10, n/60. 11 Purchased goods billed at $15,700 subject to terms of 1/15, n/30. 19 Paid invoice of May 10. 24

Purchased goods billed at $14,000 subject to cash discount terms of 2/10, n/30.

Explanation / Answer

May-31 Purchase Discounts 157 (15700*1%)         Accounts Payable 157

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