Question

Brahma Supply Company uses a periodic inventory system. During September, the following transactions and events occurred.

Sept. 4 Purchased 70 backpacks at $50 each from South Slope Company, terms 2/10, n/30.
Sept. 6 Received credit of $300 for the return of 6 backpacks purchased on Sept. 3 that were defective.
Sept. 9 Sold 15 backpacks for $84 each to Outdoor Sports, terms 2/10, n/30.
Sept. 13 Paid South Slope Company in full.
Journalize the September transactions for Brahma Supply Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Date Account titles & Explanation Debit Credit

Sep 04 Purchases (70 backpacks*$50) $3,500

Accounts payable $3,500

Sep 06 Accounts payable $300

Purchase return and allowances $300

Sept 09 Accounts receivable $1,260

(15 backpacks*$84)

Sales $1,260

Sept 13 Accounts payable $3,200

(64 backpacks*$50)

Purchase discount (3,200*2%) $64

Cash (3,200*98%) $3,136