A merchandiser, following the perpetual inventory system, has the following transactions during August, 2015:
$$\begin{array} { l l l }
\text { Date } & \text { Trenstetion } & \text { Amount (\$) } \
\hline \text { Aug. 5 } & \text { Purchases on account } & 300,000 \
\text { Aug. } 9 & \text { Paid for transportation of goods purchased } & 25,000 \
\text { Aug.10 } & \text { Purchase returned } & 20,000 \
\text { Aug.15 } & \text { Paid for goods purchased on August 5 } & ?
\end{array}$$ Credit terms of invoice are 2/15, n/45. Give journal entries for the above transactions.

Question

A merchandiser, following the perpetual inventory system, has the following transactions during August, 2015:
 $$\begin{array} { l l l } 
\text { Date } & \text { Trenstetion } & \text { Amount (\$) } \
\hline \text { Aug. 5 } & \text { Purchases on account } & 300,000 \
\text { Aug. } 9 & \text { Paid for transportation of goods purchased } & 25,000 \
\text { Aug.10 } & \text { Purchase returned } & 20,000 \
\text { Aug.15 } & \text { Paid for goods purchased on August 5 } & ?
\end{array}$$ Credit terms of invoice are 2/15, n/45. Give journal entries for the above transactions.

Quizplus · Accepted Answer

The Answer of A merchandiser, following the perpetual inventory system, has the following transactions during August, 2015:
 $$\begin{array} { l l l } 
\text { Date } & \text { Trenstetion } & \text { Amount (\$) } \
\hline \text { Aug. 5 } & \text { Purchases on account } & 300,000 \
\text { Aug. } 9 & \text { Paid for transportation of goods purchased } & 25,000 \
\text { Aug.10 } & \text { Purchase returned } & 20,000 \
\text { Aug.15 } & \text { Paid for goods purchased on August 5 } & ?
\end{array}$$ Credit terms of invoice are 2/15, n/45. Give journal entries for the above transactions.

A Merchandiser, Following the Perpetual Inventory System, Has the Following