accounting
Write the journal entries to record the following transactions.
A) Purchased $4,900 of merchandise from a supplier on account, terms FOB shipping point, 1/10, n/30, transportation charges of $80 were added to the invoice.
B) Received a credit memorandum for $500 for merchandise returned.
C) Paid the amount owed prior to the end of the discount period
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Answers
A) Debit Credit Merchandise Inventory 4,900 Accounts Payable 4,900 B) Debit Credit Accounts Payable 500 Merchandise Inventory 500 C) Debit Credit Cash 4,920 Accounts Payable 4,920 To record the payment of the amount owed prior to the end of the discount period, a journal entry would need to be made to debit cash and credit accounts payable for the amount due, including the transportation charges.
