Question

Marshall Supplies is a janitorial supply store that uses perpetual inventory. Journalize the following transactions:

July 4	Marshall purchases inventory for sale from Tidy Wholesalers for $8,500 with terms 1/10, n/30.
5	Marshall pays Express Transfer $45 for freight on the July 4 order.
7	Marshall buys an additional $11,985 in inventory from Tidy Wholesalers with terms 1/10, n/30.
13	Marshall pays Tidy Wholesalers the balance due on both invoices.

If required, round your answers to two decimal places.

July 4
5
7
13

Answer 1

40 Journal Entries 41 Credit $ 8,500.00 $ 45.00 42 Date Accounts Debit 43 44 04-07-2020 inventory A/c Dr $ 8,500.00 45 To Tidy Wholesaler A/C 46 (Being Inventory Purchased On Credit) 47 48 05-07-2020 Inventory A/c Dr $ 45.00 49 To Cash A/C 50 Being Frieght Paid on Inventory Purchased) 51 52 07-07-2020 Inventory A/c Dr $11,985.00 53 To Tidy Wholesaler A/c 54 (Being Inventory Purchased On Credit) 55 56 13-07-2020 Tidy Wholesaler A/C $ 20,485.00 57 Discount Received A/C 58 To Cash A/C 59 (Being the Payment Made to wholesaler and receive discount) 60 $ 11,985.00 $ 204.85 $ 20,280.15