NewTech Medical Devices is a medical devices wholesaler that commenced business
ID: 2399654 • Letter: N
Question
NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:
DATE TRANSACTIONS
2019
June 1 Issued Check 101 to purchase merchandise, $4,500.
3 Purchased merchandise for $1,700from BioCenter Inc., Invoice 606; terms 2/10, n/30.
5 Purchased merchandise for $5,850, plus a freight charge of $100, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,480 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
15 Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $3,000.
25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.
30 Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Explanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Jun-19 Purchases 4,500.00 Cash 4,500.00 (To record purchase) 3-Jun-19 Purchases 1,700.00 Accounts Payable - BioCenter Inc.. 1,700.00 (To record purchase wide Invoice No. 606) 5-Jun-19 Purchases 5,850.00 Freight-in 100.00 Accounts Payable - New Concepts Corporation 5,950.00 (To record purchase wide Invoice No. 1011) 9-Jun-19 Accounts Payable - BioCenter Inc.. 1,700.00 Cash ($1,700 X 98%) 1,666.00 Purchases Discount ($1,700 x 2%) 34.00 (to record the cash paid) 10-Jun-19 Accounts Payable - New Concepts Corporation 150.00 Purchase return & Allowances 150.00 (To record the credit Note 227 for defective goods returned) 11-Jun-19 Purchases 1,480.00 Accounts Payable - BioCenter Inc.. 1,480.00 (To record purchase wide Invoice No. 612) 14-Jun-19 Accounts Payable - New Concepts Corporation 5,800.00 Cash ($5,800 X 98%) 5,684.00 Purcahses Discount ($5,800 x 2%) 116.00 (to record the cash paid) 15-Jun-19 Purchases ($9,200 X 0.80 X 0.85) 6,256.00 Accounts Payable - Park Research 6,256.00 (To record purchase) 20-Jun-19 Purchases 3,000.00 Cash 3,000.00 (To record purchase) 25-Jun-19 Cash 280.00 Purchase return & Allowances 280.00 (To record the credit Note for defective goods returned) 30-Jun-19 Purchases 3,200.00 Freight-in 85.00 Accounts Payable - New Concepts Corporation 3,285.00 (To record purchase wide Invoice No. 1080) Answer 2. Cash Accounts Payable Purchases Date Dr. Amt. Cr. Amt. Balance Date Dr. Amt. Cr. Amt. Balance Date Dr. Amt. Cr. Amt. Balance 01-Jun-19 35,600.00 Dr. 3-Jun-19 1,700.00 1,700.00 Cr. 1-Jun-19 4,500.00 4,500.00 Dr. 1-Jun-19 4,500.00 31,100.00 Dr. 5-Jun-19 5,950.00 7,650.00 Cr. 3-Jun-19 1,700.00 6,200.00 Dr. 9-Jun-19 1,666.00 29,434.00 Dr. 9-Jun-19 1,700.00 5,950.00 Cr. 5-Jun-19 5,850.00 12,050.00 Dr. 14-Jun-19 5,684.00 23,750.00 Dr. 10-Jun-19 150.00 5,800.00 Cr. 11-Jun-19 1,480.00 13,530.00 Dr. 20-Jun-19 3,000.00 20,750.00 Dr. 11-Jun-19 1,480.00 7,280.00 Cr. 15-Jun-19 6,256.00 19,786.00 Dr. 25-Jun-19 280.00 21,030.00 Dr. 14-Jun-19 5,800.00 1,480.00 Cr. 20-Jun-19 3,000.00 22,786.00 Dr. 15-Jun-19 6,256.00 7,736.00 Cr. 30-Jun-19 3,200.00 25,986.00 Dr. 30-Jun-19 3,285.00 11,021.00 Cr. Freight In Purchases Return and Allowances Purchases Discounts Date Dr. Amt. Cr. Amt. Balance Date Dr. Amt. Cr. Amt. Balance Date Dr. Amt. Cr. Amt. Balance 5-Jun-19 100.00 100.00 Dr. 10-Jun-19 150.00 150.00 Cr. 9-Jun-19 34.00 34.00 Cr. 30-Jun-19 85.00 185.00 Dr. 25-Jun-19 280.00 430.00 Cr. 14-Jun-19 116.00 150.00 Cr. BioCenter Inc Terms: 2/10, n/30 New Concepts Corporation Terms: 2/10, n/30 Park Research Terms: n/30 Date Dr. Amt. Cr. Amt. Balance Date Dr. Amt. Cr. Amt. Balance Date Dr. Amt. Cr. Amt. Balance 3-Jun-19 1,700.00 1,700.00 Cr. 5-Jun-19 5,950.00 5,950.00 Cr. 15-Jun-19 6,256.00 6,256.00 Cr. 9-Jun-19 1,700.00 - Cr. 10-Jun-19 150.00 5,800.00 Cr. 11-Jun-19 1,480.00 1,480.00 Cr. 14-Jun-19 5,800.00 - Cr. 30-Jun-19 3,285.00 3,285.00 Cr. Answer 3. NEWTECH MEDICAL DEVICES Schedule of Accounts Payable Jun 30, 2019 BioCenter Inc 1,480.00 New Concepts Corporation 3,285.00 Park research 6,256.00 Total 11,021.00 Answer 4. Merchandise Return to Vendors 430.00