Question

Brief Exercise 5-13 Prepare the journal entries to record these transactions on Kimbrel Company’s books using a periodic inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On March 2, Kimbrel Company purchased $800,000 of merchandise from Pineda Company, terms 2/10, n/30. (b) On March 6, Kimbrel Company returned $95,000 of the merchandise purchased on March 2. (c) On March 12, Kimbrel Company paid the balance due to Pineda Company.

Answer 1

Journal entry

Date	account and explanation	debit	credit
Mar 2	Purchase	800000
	Account payable		800000
	(To record purchase)
Mar 6	Account payable	95000
	Purchase return and allowance		95000
	(To record purchase return)
Mar 12	Account payable	705000
	Cash (705000*98%)		690900
	Purchase discount		14100
	(To record amount paid)