Alpha Company used the periodic inventory system for purchase & sales of merchan
ID: 2575935 • Letter: A
Question
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used.
> Alpha Company purchased on account $2,700 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $300 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."
General Journal:
Date
Accounts
Debit
Credit
General Journal:
Date
Accounts
Debit
Credit
Explanation / Answer
General Journal Date Accounts Debit Credit 2016 2-May purchases 2646 accounts payable 2,646 (2700*98%) 3-May Accounts payable 294 purchase return (300*98%) 294
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