Question

Rockford Corporation, which began business on August 1, sells on terms of 2/10, n/30. Credit terms for its purchases vary with the supplier. Selected transactions for August are given below. Unless noted, all transactions are on account and involve merchandise held for resale. The perpetual inventory system is used.

Aug.	1	Purchased merchandise from Norris, Inc., $3,700, terms 2/10, n/30.
	5	Paid freight on shipment from Norris, Inc., $190.
	7	Sold merchandise to Denton Corporation, $5,100 ($3,700 cost).
	7	Paid $270 freight on August 7 shipment and billed Denton for the charges.
	9	Returned $900 worth of the merchandise purchased August 1 from Norris, Inc., because it was defective. Norris approved the return.
	9	Received $1,100 of returned merchandise ($900 cost) from Denton Corporation. Rockford approved the return.
	10	Paid Norris, Inc., the amount due.
	14	Purchased from Chambers, Inc., goods with a price of $8,300. Terms 1/10, n/30.
	15	Paid freight on shipment from Chambers, Inc., $310.
	17	Received the amount due from Denton Corporation.
	18	Sold merchandise to Weber, Inc., $9,900 ($6,900 cost).
	20	Paid $350 freight on August 18 shipment and billed Weber for the charges.
	24	Paid Chambers, Inc., the amount due.
	28	Received the amount due from Weber, Inc.

Required

Prepare journal entries for these transactions for Rockford Corporation. Round your answers to the nearest dollar

Answer 1

							Debit	Credit
1-Aug	Purchase A/c Dr						3700
		To Norris INC						3700
	Being Goods purchased from Norris INC of $ 3700.
5-Aug	Freight A/c Dr						190
		To Bank A/c						190
	Being Paid freight on shipment from Norris, Inc., $190.
7-Aug	Denton Corporation A/c Dr						5100
		To Sales A/c						5100
	Being Sold merchandise to Denton Corporation, $5,100
7-Aug	Denton Corporation A/c Dr						270
		To Bank A/c						270
	Being Paid $270 freight on August 7 shipment and billed Denton for the charges.
9-Aug	Norris INC A/c Dr						900
		To Purchase Return A/c						900
	Being Returned $900 worth of the merchandise purchased August 1 from Norris, Inc
9-Aug	Sales Return A/c Dr						1100
		To Denton Corporation A/c						1100
	Being Received $1,100 of returned merchandise ($900 cost) from Denton Corporation.
10-Aug	Norris A/c Dr						2800
		To Discount Received A/c						56
		To BanK A/c						2744
	Being Paid Norris, Inc., the amount due. With 2/10 Discount terms
14-Aug	Purchase A/c Dr						8300
		To Chamber INC						8300
		Being Goods Purchased from Chambers, Inc., with a price of $8,300. Terms 1/10, n/30.
15-Aug	Freight A/c Dr						310
		To Bank A/c						310
	Being Paid freight on shipment from Chambers, Inc., $310.
17-Aug	Bank A/c Dr						4190
	Discount Expense A/c Dr						80
		To Denton Corporation						4270
	Being Received the amount due from Denton Corporation. It is assumed that discount is only on Goods not Freight paid.
18-Aug	Weber INC A/c Dr						9900
		To Sales A/c						9900
	Being Sold merchandise to Weber, Inc., $9,900
20-Aug	Weber INC A/c Dr						350
		To Bank A/c						350
	Being Paid $350 freight on August 18 shipment and billed Weber for the charges.
24-Aug	Chamber INC A/c Dr						8300
		To Bank A/c						8217
		To Discount Received						83
	Being Paid Chambers, Inc., the amount due.
28-Aug	Bank A/c Dr						10052
	Discount Allowed A/c Dr						198
		To Weber INC						10250
	Being Received the amount due from Weber, Inc. Discount allowed only on sale amount not freight paid