Question

Prepare the journal entries to record these transactions on Cullumber Company’s books using a periodic inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

(a)		On March 2, Cullumber Company purchased $886,000 of merchandise from Oriole Company, terms 3/10, n/30.
(b)		On March 6, Cullumber Company returned $104,100 of the merchandise purchased on March 2.
(c)		On March 12, Cullumber Company paid the balance due to Oriole Company.

Answer 1

Date	Account	Debit	Credit
Mar 2	Purchases	886,000
	Accounts Payable		886,000
Mar 6	Accounts Payable	104,100
	Purchase returns		104,100
Mar 12	Accounts Payable (886,000-104,100)	781,900
	Purchase discount		23457
	Cash		758,443