Question
ID: A . Demmler Company entered into the transactions listed below. In the journal provided, prepare Demmler's journal entries, assuming use of the periodie inventory system. Omit explanations. 3 Purchased $1,500 of merchandise on credit, terms n/15. Returned $300 of the goods purchased on October 3 Oct. 6 12 Paid for the goods purchased on October 3 13 Sold goods on credit for $1,000, terms n/30 14 The customer of October 13 returned $200 of the goods 23 Received payment from the customer of October 13
Explanation / Answer
Oct 3 Purchases $1,500 Account payable $1,500 (To record purchases) Oct 6 Account payable $300 Purchase returns $300 (To record purchase returns) Oct 12 Account payable $1,200 Cash $1,200 (To record payment to account payable) Oct 13 Account receivable $1,000 Sales $1,000 Oct 14 Sales returns $200 Account receivable $200 (To record sales returns) Oct 23 Cash $800 Account receivable(1000-200) $800 (To record payment received from account receivables)