LS More Info Jun 20 Purchased inventory of $5,100 on account from Southbound Dia

Question

LS More Info Jun 20 Purchased inventory of $5,100 on account from Southbound Diamonds a jewelry importer. Terms were 3/15, n/45, FOB shipping point. 20Paid freight charges, $300 Terms were 3/15, n/45, FOB shipping point Ju 4Returned $400 of inventory to Southbound. 14Paid Southbound Diamonds, less return 16Purchased inventory of $4,300 on account from Swift Diamonds, a jewelry importer. Terms were 3/10, n/EOM, FOB destination. 18Received a $600 allowance from Swift for damaged but usable goods 24Paid Swift Diamonds, less allowance and discount. PrintDone

Explanation / Answer

Date Accounts title Dr. Cr. june 20 Merchandise inventory 5100 To Accounts payable 5100 june 20 Merchandise inventory 300 To cash 300 July 4 Accounts payable 400 To Merchandise inventory 400 July 14 Accounts payable 4700    To Cash [5100 - 400] 4700 July 16 Merchandise inventory 4300 To Accounts payable 4300 July 18 Accounts payable 600 To Merchandise inventory 600 July 24 Accounts payable [4300 - 600] 3700    To Merchandise inventory [3700 * 3%] 111 To Cash [3700 -111] 3589

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