BUSI46 E4 (10-12) 1 Jormalize t he following transactions. All purchases are sub

Question

BUSI46 E4 (10-12) 1 Jormalize t he following transactions. All purchases are subject to terms of 2/10, n30 The periodic inventory method is used (25 points). Nor 3 Purchased merchandise with a price of $2,000 from the Bartkowski Inc Nox 5Pachased merchandise from the Thiesman and Co. with a price of S6,000 Nov. 1 Prchased merchandise with a price of $3,000 from the Montana Supply Co the amount due to Bartkowski Inc.. Nov. 12 Paad the amount due to Thicsman and Co Nor 23 Paid the amount due to Montana Supply Co

Explanation / Answer

1) Journal Entry (Amount in $)

Date   Account Title and Explanation Debit Credit Nov. 3 Merchandise Inventory 2,000 Bartkowski Inc. (Accounts Payable) 2,000 (To record the purchase of merchandise inventory on account) Nov. 5 Merchandise Inventory 6,000 Thiesman & Co (Accounts Payable) 6,000 (To record the purchase of merchandise inventory on account) Nov. 7 Merchandise Inventory 3,000 Montana Supply Co.(Accounts Payable) 3,000 (To record the purchase of merchandise inventory on account) Nov.10 Bartkowski Inc. (Accounts Payable) 2,000 Cash (2,000-40) 1,960 Discount Received (2,000*2%) 40 (To record payment made within 10 days of purchase and discount received for 2%) Nov.12 Thiesman & Co (Accounts Payable) 6,000 Cash 5,880 Discount Received (6,000*2%) 120 (To record payment made within 10 days of purchase and discount received for 2%) Nov.23 Montana Supply Co.(Accounts Payable) 3,000 Cash 3,000 (To record the payment made after 10 days of purchase and no discount received)

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