Question

Prepare entries to record each of the following transactions of a merchandising company. The company records purchases using the gross method and a perpetual inventory system. Nov. 5 Purchased 1,350 units of product at a cost of $20 per unit. Terms of the sale are 4/10, ni80: the invoice is dated November 5. Nov. 7 Returned 50 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, less the return on November 7, Miew transaction lat Journal entry worksheet Purchased 1,350 units of product at a cost of $20 per unit. Terms of the sale are 4/10, n/60; the invoice is dated November 5 Nole: Enter debits before tredts. Date Debit Now 05 V?WW general jurnat Racord enlay

Answer 1

Journal entries
Date	Accounts title and explanations					Debit $	Credit $
5-Nov	Merchandise Inventory Account Dr.					27000
	Accounts payable (1350 units @ 20)						27000
7-Nov	Accounts payable Accountt dr. (50 units @20)					1000
	Merchandise inventory Account						1000
15-Nov	Accounts payable account Dr.					26000
	Cash account						24960
	Merchandise inventory Account (26000*4%)						1040