E5-16 Assignment - periodic inventory system. (b) Assume...

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*E5-16 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
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Unformatted text preview: periodic inventory system. (b) Assume that Martinez Co. paid the balance due to D. Norlan Company on May 4 instead of April 15. Prepare the journal entry to record this payment. (a) April 5 Purchases 20,000 Accounts Payable 20,000 6 Freight-in 900 Cash 900 7 Purchases 26,000 Accounts Payable 26,000 8 Accounts Payable 2,800 Purchase Returns and Allowances 2,800 15 Accounts Payable 17,200 Purchase Discounts 344 Cash 16,856 (b) May 4 Accounts Payable 17,200 Cash 17,200...
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