Question

Brief Exercise 5-16

Prepare the journal entries to record these transactions on Oriole Company’s books using a periodic inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. 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, Oriole Company purchased $877,000 of merchandise from Sage Hill Company, terms 3/10, n/30.
(b)		On March 6, Oriole Company returned $108,700 of the merchandise purchased on March 2.
(c)		On March 12, Oriole Company paid the balance due to Sage Hill Company.

No.	Date	Account Titles and Explanation	Debit	Credit
(a)	choose a transaction date March 2March 6March 12	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(b)	choose a transaction date March 2March 6March 12	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(c)	choose a transaction date March 2March 6March 12	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount

Answer 1

No.	Date	Account Titles and Explanation	Debit	Credit
(a)	Mar 2	Purchase	877000
		Account payable		877000
(b)	Mar 6	Account payable	108700
		Purchase return and allowance		108700
(c)	Mar 12	Account payable (877000-108700)	768300
		Cash (768300*97%)		745251
		Purchase discount		23049