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Unformatted text preview: E5-16Correct. This information relates to Martinez Co. 1.On April 5 purchased merchandise from D. Norlan Company for $20,000, terms 2/10, net/30, FOB shipping point.2.On April 6 paid freight costs of $900 on merchandise purchased from D. Norlan Company.3.On April 7 purchased equipment on account for $26,000. 4.On April 8 returned some of April 5 merchandise to D. Norlan Company which cost $2,800.5.On April 15 paid the amount due to D. Norlan Company in full.Instructions(a)Prepare the journal entries to record these transactions on the books of Martinez Co. using a periodic inventory system. (List multiple debit/credit entries in descending order amount.)DateDescriptionDebitCreditApr. 5Purchases20000 Accounts Payable20000 Apr. 6Freight-in900 Cash900 Apr. 7Equipment26000 Accounts Payable26000 Apr. 8Accounts Payable2800 Purchases Returns and Allowances2800 Apr. 15Accounts Payable17200 Cash16856 Purchases Discounts344 (b)Assume that Martinez Co. paid the balance due to D. Norlan Company on May 4 instead of Assume that Martinez Co....
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- Fall '10
- Accounting, FIFO and LIFO accounting, D. Norlan Company