Question

The following selected transactions were completed by Betz Company during July of the current year. Betz Company uses the net method under a perpetual inventory system.

July	1	Purchased merchandise from Sabol Imports Co., $13,725, terms FOB destination, n/30.
	3	Purchased merchandise from Saxon Co., $10,550, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $205 was added to the invoice.
	5	Purchased merchandise from Schnee Co., $12,800, terms FOB destination, 2/10, n/30.
	6	Issued debit memo to Schnee Co. for merchandise with an invoice amount of $4,550 returned from purchase on July 5.
	13	Paid Saxon Co. for invoice of July 3.
	14	Paid Schnee Co. for invoice of July 5, less debit memo of July 6.
	19	Purchased merchandise from Southmont Co., $29,160, terms FOB shipping point, n/eom.
	19	Paid freight of $425 on July 19 purchase from Southmont Co.
	20	Purchased merchandise from Stevens Co., $22,400, terms FOB destination, 1/10, n/30.
	30	Paid Stevens Co. for invoice of July 20.
	31	Paid Sabol Imports Co. for invoice of July 1.
	31	Paid Southmont Co. for invoice of July 19.

Journalize the entries to record the transactions of Betz Company for July. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Date	Account Titles and Explanation	Debit	Credit
July. 1	Inventory	$ 13,725
	Account Payable		$ 13,725
	(To record inventory purchased on account)
July. 3	Inventory	$        205
	Cash		$        205
	(To record freight charges paid)
July. 3	Inventory [(10550-205)*98%]	$ 10,138
	Account Payable		$ 10,138
	(To record inventory purchased on account)
July. 5	Inventory [12800*98/100]	$ 12,544
	Account Payable		$ 12,544
	(To record inventory purchased on account)
July. 6	Account Payable [4550*98/100]	$    4,460
	Inventory		$    4,460
	(To record inventory returned and received credit)
July. 13	Account Payable	$ 10,138
	Cash		$ 10,138
	( To record account payable paid)
July. 14	Account Payable	$    8,084
	Cash		$    8,084
	( To record account payable paid)
July. 19	Inventory	$ 29,160
	Account Payable		$ 29,160
	(To record inventory purchased on account)
July. 19	Inventory	$        425
	Cash		$        425
	(To record freight charges paid)
July. 20	Inventory [22400*99/100]	$ 22,176
	Account Payable		$ 22,176
	(To record inventory purchased on account)
July. 30	Account Payable	$ 22,176
	Cash		$ 22,176
	( To record account payable paid)
July. 31	Account Payable	$ 13,725
	Cash		$ 13,725
	( To record account payable paid)
July. 31	Account Payable	$ 29,160
	Cash		$ 29,160
	( To record account payable paid)