NewTech Medical Devices is a medical devices wholesaler that commenced business
ID: 2412479 • 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:
Purchased merchandise for $1,500 from BioCenter Inc., Invoice 606; terms 3/10, n/30.
Purchased merchandise for $5,450, plus a freight charge of $100, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $350 that was returned; the goods were purchased on Invoice 1011, dated June 5.
Purchased merchandise for $1,640 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
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.
Purchased merchandise with a list price of $8,800 and trade discounts of 15 percent and 10 percent from Park Research, Invoice 1029, terms n/30.
Returned merchandise purchased on June 20 as defective, receiving a cash refund of $240.
Purchased merchandise for $2,800, plus a freight charge of $81, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Required:
Journalize the transactions in a general journal.
Analyze:
What was the amount of trade discounts received on the June 15 purchase from Park Research?
Purchased merchandise for $1,500 from BioCenter Inc., Invoice 606; terms 3/10, n/30.
5Purchased merchandise for $5,450, plus a freight charge of $100, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
9Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
10Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $350 that was returned; the goods were purchased on Invoice 1011, dated June 5.
11Purchased merchandise for $1,640 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
14Paid 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.
15Purchased merchandise with a list price of $8,800 and trade discounts of 15 percent and 10 percent from Park Research, Invoice 1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $2,600. 25Returned merchandise purchased on June 20 as defective, receiving a cash refund of $240.
30Purchased merchandise for $2,800, plus a freight charge of $81, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.
Medicai Devices purchases merchandise for cash and on open account in june 2019, NewTech Medicat Devices engaged in the following purchasing and cash pryment acthses 2019 June 1 Issued Check 101 to purchass erohandise,04,100 3 Purchased merabandise for $1,500 from ntocenter 5 Parchased nerchandise for $5,450, plus a freighe 9 Pald amount due to Biocenter Ia. tor parohase of 10secelved Credit Nonorandan 227 from e Concepts Ine.Iovoton 6067 tens 3/10, /30. oharge of $100, trom Nev Conoepta Corpozation, elook Invoice 1011, terms 2/10, n/30 7une 3, loas discount, Check 102. Corporation for danaged berchandina totaling $350 Relerences thet van raturned the goods vere parchased on Invotoe 1011, dated une 5 Ine., Invoice 6121 torms 2/10, n/30. Invoiee 1011 of June s, leas the return of June 10 11Parchased sarohandise for $1,640 from BioCenter 14Paid anoant due to sev Concepts Corporation for 15Parchased nerchandise with a 1ist price of $8,800 20asued Check 104 to purchaso merchandise, $2.600 and less the cash discount, Check 103 and trade discounts of 15 percent and 10 percent tron Park Rescarch, Invoice 1029, teres n/30 defective, receiving a cash refund of 240. charge of 501, trom ew concepts Corporatlon, 2sReturned merchandise purchased on Jane 20 a 30Parchased merchandise for $2,800, plus a freight Invoice 1000, term. 2/10, n/30. Required ournatze the transactions in a generel journal Analyze: What wes the amount of trade discounts receved on the June 15 purchase trom Park Research2 Complete this question by entering your answers in the tabs below. General Analyze ournal ournalize the transactions in a general journal. Journal entry worksheet 2 3 4 5 6 7 8 11 Issued Check 101 to purchase merchandise, $4,100. Note: Enter debits before credits GENERAL JOURNAL DEBIT ICREDIT une 0 ocord entry Cloar ntryExplanation / Answer
Preparing the Journal Entries of the Above Transactions: Date General Journal Debit Credit 01-Jun Purchase $4,100.00 Cash $4,100.00 To Record Purchased merchandise, check 101 03-Jun Purchases $5,450.00 Freight In $100.00 Accounts payable/New Concepts Corporation $5,550.00 To Record Purchased merchandise on account, invoice 1011, terms 2/10, n/30 05-Jun Purchases $1,500.00 Accounts payable/Bio Center Inc. $1,500.00 To Record Purchased merchandise on account, Invoice 606, terms 2/10, n/30 09-Jun Accounts payable/Bio Center Inc. $1,500.00 Purchases discount(1,500 x 2%) $30.00 Cash $1,470.00 To Record Paid amount due to invoice 606, check 102 10-Jun Accounts payable/New concepts corporation $350.00 Purchases returns and allowances $350.00 To RecordReceived credit memorandum 227 for return of damaged merchandise 11-Jun Purchases $1,640.00 Accounts payable/Bio Center InC. $1,640.00 To Record Purchased merchandise on account Invoice 612 terms 2/10, n/30 14-Jun Accounts payable/New concepts corporation $5,550.00 Purchases discounts (5100 x 2%) $102.00 Cash $5,448.00 To Record Paid amount owed on Invoice 1011, check 103 15-Jun Purchases $6,732.00 Accounts payable/Park Researce $6,732.00 8800 x (1 – 0.15) = 7480, 7480 x (1 – 0.10) = 6732 To Record Purchased merchandise on account, Invoice 1029, n/30 20-Jun Purchasese $2,600.00 Cash $2,600.00 To Record Purchased merchandise check 104 25-Jun Cash $240.00 Purchases returns and allowace $240.00 To Record Received cash for return of defective merchandise purchased june 20 30-Jun Purchases $2,800.00 Freight in $81.00 Accounts payable/New Concepts corporation $2,881.00 To Record Purchased merchandise on account, invoice 1080 terms 2/10, n/30 Analyze: The amount of trade discounts received on the June 15 purchase from Park Research was $2068 (List price, $8800, less purchase price, $6732).