Page 6 of 11 http://ezto.mhhm.mcgraw-hill.com/hm_accounting.tpx?todo=printview restores the units to its inventory. Date General Journal Debit Credit May 7 Accounts Payable 2,761 Merchandise Inventory 2,761 (b) On May 8, Radica discovers that 60 units are damaged but are still of some use and, therefore, keeps the units. Mechanic Parts sends Radica a credit memorandum for $180 to compensate for the damage. Date General Journal Debit Credit May 8 Accounts Payable 180 Merchandise Inventory 180 (c) On May 15, Radica discovers that 72 units are the wrong color. Radica keeps 43 of these units because Mechanic sends a $92 credit memorandum to compensate. However, Radica returns the remaining 29 units to Mechanic. Mechanic restores the 29 returned units to its inventory. Date General Journal Debit Credit May 15 Accounts Payable 411 Merchandise Inventory 411 Worksheet Learning Objective: 05-P1 Mechanic Parts was organized on May 1, 2009, and made its first purchase of merchandise on May 3. The purchase was for 1,200 units at a price of $7 per unit. On May 5, Mechanic Parts sold 720 of the
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This note was uploaded on 08/09/2010 for the course ACCT 1 taught by Professor Ludwig during the Spring '10 term at Los Angeles City College.