Question

Record the following transactions of J. Min Designs in a general journal assuming that they use the periodic system. DATE TRANSACTIONS 2013 April 1 Purchased merchandise on credit from O’Rourke Fabricators, Invoice 885, $3,000, terms 1/10, n/30; freight of $20 prepaid by O’Rourke Fabricators and added to the invoice (total invoice amount, $3,020). 9 Paid amount due to O’Rourke Fabricators for the purchase of April 1, less the 1 percent discount, Check 457. 15 Purchased merchandise on credit from Kroll Company, Invoice 145, $1,250, terms 1/10, n/30; freight of $75 prepaid by Kroll and added to the invoice. 17 Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $50. 24 Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 1 percent discount, Check 470.

Answer 1

Answer and Explanation:

According to the scenario, the journal entry of the given data are as follow:-

Journal Entry

On April 1

Purchase A/c Dr. $3,000

Freight-in A/c Dr. $20

To Accounts payable A/c $3,020

(Being the purchased merchandise from O’Rourke fabricators)

For recording this we debited the purchased and freight in as it increased the expenses and credited the account payable as it increased the liability

On April 9

Accounts payable A/c Dr. $3,020

To Purchase discount A/c($3,000 × 1%) $30

To Cash A/c ($3,000 × 99%) + $20 $2,990

(To Record the accounts payable on discount)

For recording this we debited the account payable as it decreased the liabilities and credited the purchased discount and cash as it increased the discount and reduced the cash

On April 15

Purchase A/c Dr. $1,250

Freight-in A/c Dr. $75

To Accounts payable A/c $1,325

(To Record the purchased merchandise from kroll company)

For recording this we debited the purchased and freight in as it increased the expenses and credited the account payable as it increased the liability

On April 17

Accounts payable A/c Dr. $50.24

To Purchase return A/c $50.24

(To Record the purchase return of damaged merchandise)

For recording this we debited the account payable as it decreased the liabilities and credited the purchased return as it increased the return

April 24

Accounts payable A/c($1,325 - $50.24) Dr. $1,274.76

To Purchase discount A/c(1,250 - 50.24) × 1% $11.998

To Cash A/c($1,250 - $50.24) × 99% + $75 $1,262.76

(To Record the paid amount on discount to kroll company)

For recording this we debited the account payable as it decreased the liabilities and credited the purchased discount and cash as it increased the discount and reduced the cash