Week 4Purchase Returns and Allowances

Week 4Purchase Returns and Allowances - On May 10 Matrix...

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12/10/10 Purchase Returns and Allowances Purchase Return . . . Merchandise returned by the purchaser to the supplier. Purchase Allowance . . . A reduction in the cost of defective merchandise received by a purchaser from a supplier. P 1
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12/10/10 Purchase Returns and Allowances On May 9, Matrix, Inc. purchased $20,000 of merchandise inventory on account, credit terms are 2/10, n/30. May 9 Merchandise Inventory 20,000 Accounts Payable 20,000 Purchased merchandise on account P 1
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12/10/10 Purchase Returns and Allowances
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Unformatted text preview: On May 10, Matrix, Inc. returned $500 of defective merchandise to the supplier. Dr. Cr. May 10 Accounts Payable 500 Merchandise Inventory 500 Returned defective merchandise P 1 12/10/10 Purchase Returns and Allowances On May 18, Matrix, Inc. paid the amount owed for the purchase of May 9. Purchase 20,000 $ Returns (500) Amount Due 19,500 Discount (390) Cash Paid 19,110 $ Dr. Cr. May 18 Accounts Payable 19,500 Cash 19,110 Merchandise Inventory 390 Paid account in full P 1...
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