Question

Exercise 1 Part 1: Prepare the necessary journal entries on the books of Marlon Carpet Company to record the following transactions, assuming a perpetual inventory system is used. Marlon purchased the goods from ABC Company. (a) Marlon purchased $45,000 of merchandise from ABC Company on account, terms 2/10, n/30. The goods cost ABC Company $35000. (b) Marlon returned $4,000 of damaged merchandise for credit. (c) Marlon paid for the merchandise purchased within 10 days Solution:

Answer 1

An Swer Given trat *The journal entries af Maslon car Pet Corlany ne cessary on the book hran Sachon a Per tual inventary The ouning Syskenisused (a) Manion Purchaed of meYchandise From ABC Comfany Credit Oebit ACcoun iHe and exlanalion u5iooo Inven tory Allount Payable U5I000 of M an lon Yekune d fo credit danaged u006 (b) Mc chandise Oebit ile andeaflation Cvedit ACCounh Pay able inven oy 4006 Acloun

Man lon Paid For the mercha disc Purchaed Account Payabe Acownt Payable In entory L5 000 ulooo In ventory Actount Payable xdisourk uleoG6 x 2. Aclount itle and exPla ion Alcount Payable inventory cosh= 26 ulooo u0,180

Account Payale and Ocbit Crcdit explain on Account Payable uloso Inventory uo18o cash