Question

This information relates to Rice Co..

1. On April 5, purchased merchandise from Jax Company for $28,000, terms 2/ 10, n/30.
2. On April 6, paid freight costs of $700 on merchandise purchased from Jax Company.
3. On April 7, purchased equipment on account for $30,000.
4. On April 8, returned $3,600 of April 5 merchandise to Jax Company
5. On April 15, paid the amount due to Jax Company in full.
Prepare the mal entries to record the transactions listed above on Rice Co.'s books. Rice Co. uses a perpetual inventory system. (If no entry is require d, se the accoune titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually entries in the order presented in the problem.)

Answer 1

Rice Co.

Journal Entries:

April 5:

Debit Inventory $28,000

Credit Accounts Payable (Jax Company) $28,000

To record the purchase of goods, terms 2/10, n/30.

April 6:

Debit Freight-in Expense $700

Credit Cash Account $700

To record the payment of freight costs for goods purchased from Jax Company.

April 7:

Debit Equipment $30,000

Credit Accounts Payable $30,000

To record the purchase of equipment on account.

April 8:

Debit Accounts Payable (Jax Company) $3,600

Credit Inventory $3,600

To record the return of goods to Jax Company.

April 15:

Debit Accounts Payable (Jax Company) $24,400

Credit Cash Discount $488

Credit Cash Account 23,912

To record the full settlement on account.

Step-by-step explanation:

Rice Co's journal entries are made on a daily basis as transactions occur. They show the accounts to be debited and the ones to be credited in the general ledger. Journal entries are the initial records of transactions made by the company in its accounting system.