Question

Jon’s company purchased $1,500 of inventory on account from Sartol Industries on January 9th. The terms were 3/15, n/45. Jon’s company also paid freight charges of $120 on January 10th and returned $500 of the inventory on January 14th. Journalize the entry to record the payment of the invoice on February 6th.

Answer 1

February 6, invoice is paid:

Dr Accounts payable 1,000

Cr Cash 1,000

Step-by-step explanation:

January 9, merchandise is purchased on account:

Dr Merchandise inventory 1,500

Cr Accounts payable 1,500

January 10, freight charges are paid:

Dr Merchandise inventory 120

Cr Cash 120

January 14, partial return of merchandise:

Dr Accounts payable 500

Cr Merchandise inventory 500

February 6, invoice is paid:

Dr Accounts payable 1,000

Cr Cash 1,000