Respuesta :
Answer:
The Journal entries are as follows:
(a) On November 5,
Merchandise inventory A/c Dr. $6,000
To Accounts payable $6,000
(To record the purchasing of Merchandise inventory)
(b) On November 7,
Accounts payable A/c Dr. $250
To Merchandise inventory $250
(To record the returned units)
(c) On November 15,
Accounts payable A/c Dr. $5,750
To cash $5,635
To Merchandise inventory $115
Workings:
Final amount due:
= Cost of goods purchased - Cost of goods returned
= 6,000 - 250
= $5,750
Discount amount:
= Final amount due × Discount percentage
= 5,750 × 2/100
= $115
Cash payment to be made:
= Final amount due - Discount amount
= 5,750 - 115
= $5,635
Answer:
Nov 5
Dr Inventory $6,000
Cr Accounts payable $6,000
Nov 7
Dr Accounts payable $250
Cr Inventory $250
Nov 15
Dr Accounts $5,750
Cr Cash $5,635
Cr Purchase discount $115
Explanation:
Nov 5 (Date of acquisition)
Using Gross method of Perpetual inventory method, all purchases must be recorded on gross amount so we have to debit inventory to recognize the purchase and credit accounts payable to recognize the purchases on account in the amount of $6,000 (600 units x $10). Discount must be recognized upon payment within the discount period.
Nov 7 (Purchase return)
During the purchase return, we reverse the original entry we made so we debit accounts payable and credit inventory account in the amount of $250 (25 units x $10)
Nov 15 (Date of settlement)
During the payment period, we consider first if it is within the discount period (10 days in this scenario). After which, we will deduct purchase returns before computing discount. So the original purchase of $6,000 less $250 purchase return equals $5,750. Then finally we can now compute the discount, $5,750 x 2% = $115. We will deduct this amount from $5,750 to arrive the net cash payment. So to entry, we will debit Accounts payable $5,750 then credit Cash of $5,635 ($5,750-115) and another credit of purchase discount of $115.
