Question

Purchase-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Niles Co. during March of the current year: Mar. 1. Purchased merchandise from Haas Co., $13,700, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $250 was added to the invoice. 5. Purchased merchandise from Whitman Co., $10,550, terms FOB destination, n/30. 10. Paid Haas Co. for invoice of March 1. 13. Purchased merchandise from Jost Co., $7,400, terms FOB destination, 1/10, n/30. 14. Issued debit memo to Jost Co. for $1,400 of merchandise returned from purchase on March 13. 18. Purchased merchandise from Fairhurst Company, $10,000, terms FOB shipping point, n/eom. 18. Paid freight of $170 on March 18 purchase from Fairhurst Company. 19. Purchased merchandise from Bickle Co., $8,100, terms FOB destination, 2/10, n/30. 23. Paid Jost Co. for invoice of March 13 less debit memo of March 14. 29. Paid Bickle Co. for invoice of March 19. 31. Paid Fairhurst Company for invoice of March 18. 31. Paid Whitman Co. for invoice of March 5. Required: Journalize the entries to record the transactions of Niles Co. for March. If an amount box does not require an entry, leave it blank. Mar. 1 II II II II Mar. 5

Answer 1

Journal Entries
Date	General Journal	Debit	Credit
Mar. 1	Inventory	$13,700
	Accounts Payable - Haas Co.		$13,700
	(To record the purchase of inventory on account)
Mar. 5	Inventory	$10,550
	Accounts Payable - Whitman Co.		$10,550
	(To record the purchase of inventory on account)
Mar. 10	Accounts Payable - Haas Co.	$13,700
	Purchase Discount ($13,700*2/100)		$274
	Cash ($13,700 - $274)		$13,426
	(To record the payment to Haas Co.)
Mar. 13	Inventory	$7,400
	Accounts Payable - Jost Co.		$7,400
	(To record the purchase of inventory on account)
Mar. 14	Accounts Payable - Jost Co.	$1,400
	Inventory		$1,400
	(To record the return of inventory purchased on account)
Mar. 18	Inventory	$10,000
	Accounts Payable - Fairhurst Company		$10,000
	(To record the purchase of inventory on account)
Mar. 18	Freight Expenses	$170
	Cash		$170
	(To record the payment of freight expenses)
Mar. 19	Inventory	$8,100
	Accounts Payable - Bickle Co.		$8,100
	(To record the purchase of inventory on account)
Mar. 23	Accounts Payable - Jost Co. ($7,400 - $1,400)	$6,000
	Purchase Discount ($6,000*1/100)		$60
	Cash ($6,000 - $60)		$5,940
	(To record the payment made to Just Co. within discount period)
Mar. 29	Accounts Payable - Bickle Co.	$8,100
	Purchase Discount ($8,100*2/100)		$162
	Cash ($8,100 - $162)		$7,938
	(To record the payment made to Bickle Co. within discount period)
Mar. 31	Accounts Payable - Fairhurst Company	$10,000
	Cash		$10,000
	(To record the payment to Fairhurst Company)
Mar. 31	Accounts Payable - Whitman Co.	$10,550
	Cash		$10,550
	(To record the payment to Whitman Co.)