Question

Partially correct answer iconYour answer is partially correct. This information relates to Windsor Co.

1. On April 5, purchased merchandise from Wildhorse Company for $25,100, terms 2/10, n/30.
2. On April 6, paid freight costs of $530 on merchandise purchased from Wildhorse.
3. On April 7, purchased equipment on account for $32,500.
4. On April 8, returned $3,600 of April 5 merchandise to Wildhorse Company.
5. On April 15, paid the amount due to Wildhorse Company in full.

Prepare the journal entries to record the transactions listed above on Wildhorse Co.’s books. Wildhorse Co. uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

1. Dr Merchandise inventory 25100

Cr Accounts payable 25100

(To record purchase of inventory on account)

2. Dr Merchandise inventory 530

Cr Cash 530

( To record freight cost )

3. No entry

4. Dr Accounts payable 3600

Cr Merchandise inventory 3600

( To record purchase return)

5. Dr Accounts payable ( 25100-3600) 21500

Cr Cash 21500

(To record paid the amount due).