Prepare the journal entries to record these transactions on Kimbrel Company’s bo
ID: 2417994 • Letter: P
Question
Prepare the journal entries to record these transactions on Kimbrel Company’s books using a periodic inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
On March 12, Kimbrel Company paid the balance due to Pineda Company.
(a) On March 2, Kimbrel Company purchased $915,700 of merchandise from Pineda Company, terms 3/10, n/30. (b) On March 6, Kimbrel Company returned $103,000 of the merchandise purchased on March 2. (c)On March 12, Kimbrel Company paid the balance due to Pineda Company.
Explanation / Answer
a.
2nd march
inventory A/C Dr. 915700
To Pineda A/C 915700
b.
6th march
Pineda A/C Dr. 103000
To inventory A/c 103000
c.
12th march
Pineda A/C Dr. 812700
To discount received A/c 24381
To cash A/c 788319