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This information relates to Wildhorse Co..

1. On April 5, purchased merchandise from Carla Vista Company for $28,200, terms 2/10, n/30.
2. On April 6, paid freight costs of $710 on merchandise purchased from Carla Vista.
3. On April 7, purchased equipment on account for $33,200.
4. On April 8, returned $3,800 of April 5 merchandise to Carla Vista Company.
5. On April 15, paid the amount due to Carla Vista Company in full.

a. Prepare the journal entries to record the transactions listed above on Wildhorse Co.’s books. Wildhorse Co. uses a perpetual inventory system.
b. Assume that Wildhorse Co. paid the balance due to Sandhill Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

Respuesta :

akiran007

Answer:

Wildhorse Co.’s books

Perpetual Inventory System

Date                  Account                                        Dr.              Cr

5 April                 Merchandise Inventory       $28,200

                              Accounts/ Notes Payable                                $28200

Purchased merchandise from Carla Vista Company for $28,200, terms 2/10, n/30.

6 April                 Freight Charges                  $ 710

                                Cash                                                   $ 710

Paid freight costs of $710

7 April                    Equipment                    $ 33200

                               Accounts Payable                              $ 33,200

Purchased equipment on account for $33,200.

8 April                 Accounts Payable             $3800

                                Merchandise Inventory                     $ 3800

Returned $3,800 of April 5 merchandise

15 April                  Accounts Payable               $ 24,400

                                 Purchases Discount                              488

                                 Cash                                                       $ 23,912

Paid the amount due ($28,200- $3800= $24,400)

2% of $ 24,400= $ 488

b. Payment of balance due on May 4 instead of Apr 5

4 May                Accounts Payable             $ 24,400

                                   Cash                                                  $ 24,400

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