Question

Required:

Record the following transactions of J. Min Designs in a general journal:

DATE			TRANSACTIONS
20X1
April	1		Purchased merchandise on credit from O’Rourke Fabricators, Invoice 885, $1,900, terms 2/10, n/30; freight of $38 prepaid by O’Rourke Fabricators and added to the invoice (total invoice amount, $1,938).
	9		Paid amount due to O’Rourke Fabricators for the purchase of April 1, less the 2 percent discount, Check 457.
	15		Purchased merchandise on credit from Kroll Company, Invoice 145, $1,200, terms 2/10, n/30; freight of $70 prepaid by Kroll and added to the invoice.
	17		Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $100.
	24		Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 2 percent discount, Check 470.

Answer 1

Solution:

Date	Account Name	Dr	Cr
April. 1	Inventory	$    1,938
	Account Payable		$    1,938
	(To record inventory purchased on account)
April.9	Account Payable	$    1,938
	Inventory ( 1900*2/100)		$          38
	Cash		$    1,900
	( To record account payable paid)
April. 15	Inventory	$    1,270
	Account Payable		$    1,270
	(To record inventory purchased on account)
April. 17	Account Payable	$        100
	Inventory		$        100
	(To record inventory returned and received credit)
April.24	Account Payable	$    1,170
	Inventory (1200-100)*2%		$          22
	Cash		$    1,148
	( To record account payable paid)

Notes:

1) Perpetual inventory method has been used to answer the question as no information is provided in the question.