Prepare the necessary general journal entries for the following transactions. Us
ID: 2387901 • Letter: P
Question
Prepare the necessary general journal entries for the following transactions. Use a perpetual inventory system. May 2 Purchased merchandise from Tiger Company under the following terms: S4.600 price, invoice dated May 2. credit terms 2/15. n/60. FOB shipping point. May 4 Returned to Tiger Company unacceptable merchandise that had an invoice price of S600. May 10check to Tiger Company for the May 2 purchase. May 15 Sold merchandise costing SI.500 to Lion Company for $2,500. credit terms 2/10, rv30Explanation / Answer
May 2, Purchase a/c....Dr 4600 to Tiger & Company 4600 (Being goods purchased from tiger & Co) May 4, Tiger & co a/c...dr $600 To purchase return $ 600 (Being Goods returened to tiger & Co) May 10, tiger & co A/c ..Dr 4000 to Bank A/c 3920 to discount received 80 (Being cheque paid and discount recorded) May 15, Lion & Co A/c...Dr $2500 to Sales a/c $2500 (being goods Sold to Tiger & Co) *Note:Discount is recorded in the books only when right to receive is established