Answer:
Mar. 1
Merchandise $13,900 (debit)
Freight Charges Prepaid $550 (debit)
Accounts Payable : Haas Co. $13,900 (credit)
Cash $550 (credit)
Mar. 5
Merchandise $10,650 (debit)
Accounts Payable : Whitman Co. $10,650 (credit)
Mar. 10
Accounts Payable : Haas Co. $13,622 (debit)
Cash $13,622 (credit)
Mar. 13
Merchandise $7,100 (debit)
Accounts Payable : Jost Co. $7,100 (credit)
Mar. 14
Accounts Payable : Jost Co. $1,300 (debit)
Merchandise $1,300 (credit)
Mar. 18-purchase
Merchandise $9,600 (debit)
Accounts Payable : Fairhurst Company $9,600 (credit)
Mar. 18-freight
Freight Charges $310 (debit)
Cash $310 (credit)
Mar. 19
Merchandise $13,800(debit)
Accounts Payable : Bickle Co. $13,800 (credit)
Mar. 23
Accounts Payable : Jost Co. $5,742 (debit)
Cash $5,742 (credit)
Mar. 29
Accounts Payable : Bickle Co. $13,524 (debit)
Cash $13,524 (credit)
Mar. 31-Fairhurst
Accounts Payable : Fairhurst. $9,600 (debit)
Cash $9,600 (credit)
Mar. 31-Whitman
Accounts Payable : Whitman $10,650 (debit)
Cash $10,650 (credit)
Step-by-step explanation:
When Merchandise is purchased on Account,
Recognize the Merchandise Account (debit) and recognize the Accounts Payable Account (credit).
When Merchandise is finally paid for.
First determine if payment fall within discount period.
Also determine if there were previous returns to supplier.
Then de-recognize the Accounts Payable Account and recognize the Cash Payment to the extend of amount paid.