May 1 purchased supplies for cash , 740 4 purchased inventory on credit terms of
ID: 2374352 • Letter: M
Question
May 1 purchased supplies for cash , 740
4 purchased inventory on credit terms of 3/10 net eom, $3,600
8 returned half the inventory purchased on may 4. It was not the inventory ordered
10 sold goods for cash $1000 (cost , 500)
13 sold inventory on credit terms of 2/15, n/45, $10,100(cost $5,500)
14 paid the amount owed on account from May 4 less the return (may 8 ) and the discount
17 received defective inventory as a sales return from the May 13 sale, $800. Trixie's cost of the inventory received was $650
18 purchased inventory of $3, 900 on account. Payment terms were 2/10 net 30
26 paid the net amount owed for the may 18 purchase
28 received cash in full settlement of the account from the customer who purchased inventory on may 13 less the return and the discount
29 purchased inventory for cas $10?000, plus freight charges of $200
Can you help me journalize the transactions on the books of trixie's amusements
Explanation / Answer
May 1 Supplies Dr 740
Cash Cr 740
May4 Merch Inv Dr 3600
Acct Pyable Cr 3600
(Payment terms 3/10, net eom)
May 8 Purch Returns Dr 1800
Merch Inv Cr 1800
Acct Payable Dr 1800
Purch Returns Cr 1800
May 10 Cash Dr 1000
Sales Cr 1000
COG Sold Dr 500
Merch Inv Cr 500
May 13 Acct Rxable Dr 10,100
Sales Cr 10,100
COG Sold Dr 5500
Merch Inv Cr 5500
(credit terms of 2/15, n/45)
May 14 Acct Payable Dr 1800
Trade Disc Cr 54
Cash Cr 1746
(Trade disc 3%*(3600-1800)= 54)
May17 Sales Dr 800
Sales Return Cr 800
Sales Return Dr 800
Acct Raxbale Cr 800
Merch Inv Dr 650
COG SOld Cr 650
May18 Merch Inv Dr 3900
Acct Pyable Cr 3900
(Payment terms 2/10, net 30)
May 26 Acct payable Dr 3900
Trade Disc Cr 78
Cash Cr 3822
(Disc 2%*3900 = 78)
May 28 Cash Dr 9114
Trade DIsc Dr 186
Acct Payable Cr 9300
(Disc = 2%*(10100-800) = 186)
May 29 Merch Inv Dr 10000
Freight exp Dr 200
Cash Cr 10200