Question

27 On March 3, Byrde Inc purchases inventory on account for $3,200 with invoice terms of 4/10, 1/30. Freight costs of $260, related to this purchase, were paid on March 5. On March 6, upon closer inspection, Byrde finds defective inventory with a cost of $300 and returns it. On March 12, Byrde pays the amount due for the March 3 purchase. Then, on March 29, Byrde sells the entire inventory which had been purchased on March 3, less the return for $5,300 on account. Record all transactions for Byrde, assuming the company uses a perpetual inventory system (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 16 points 8 02:03:53 View transaction list Journal entry worksheet < 3 1 2 4 5 6 Record the purchase of inventory on account for $3,200, terms 4/10, 1/30, Note: Enter debts before credits Date General Journal Debit Credit March 03 Record entry Clear entry View general Journal

Answer 1

1. Journal Entries -

Date Credit Byrde Inc. Journal Entries Accounts Title Debit Inventory $ 3,200 Accounts Payable (Being Inventory Purchased on account) Mar 3 $ 3,200 Mar 5 $ 260 Freight In Cash $ 260 (Being Freight Paid) Mar Accounts Payable $ 300 Inventory (Being defective inventory returned) $ 300 Mar 12 Accounts Payable $ 2,900 Cash (Being payment made on account) $ 2,900 Mar 29 Accounts Receivable $ 5,300 Sales Revenue (Being Revenue Earned on account) $ 5,300 Mar 29 Cost of goods sold $ 3,200 Inventory (Being Cost of sold incurred) $ 3,200