Question

ournalize entries for the following related transactions of Manville Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles.

Mar.	1	Purchased $48,400 of merchandise from Wright Co. on account, terms 2/10, n/30.
	9	Paid the amount owed on the invoice within the discount period.
	11	Discovered that $7,800 of the merchandise purchased on Mar. 1 was defective and returned items, receiving credit.
	18	Purchased $6,000 of merchandise from Wright Co. on account, terms n/30.
	20	Received a refund from Wright Co. for return on Mar. 11 less the purchase on Mar. 18.

Answer 1

	Journal entries for the following related transactions of Manville Heating and Air Company
Date	Description	Debit	Credit
1-Mar	Merchandise Inventory ($48400-($48400 x 2%))	$47,432
	Accounts Payable		$47,432
	(To record inventory purchased from Wright Co. on account after 2% discount)
9-Mar	Accounts payable	$47,432
	Cash		$47,432
	(To record payment made to Wright Co. within 10 days to avail discount)
11-Mar	Accounts payable ($7800-($7800*2%))	$7,644
	Merchandise Inventory		$7,644
	(To record defective merchandise returned)
18-Mar	Merchandise Inventory	$6,000
	Accounts Payable		$6,000
	(To record inventory purchased from Wright Co. on account)
20-Mar	Cash	$1,644
	Accounts payable		$1,644
	(To record refund from Wright Co. for return less the purchase on mar 18)