Question

Journalize 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 $55,100 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 $7,200 of the merchandise purchases on Mar. 1 was defective and returned items, receiving credit. 18 Purchased $6,200 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

Accounting purchases under periodic inventory system.

Date	Account	Debit	Credit
Mar.1	Purchases	55,100
	Accounts payable		55,100
Mar.9	Accounts payable	55,100
	Purchase discounts		1,102
	Cash		53,998
Mar.11	Accounts receivable	7,056
	Purchase returns and allowances		7,200
	Purchase discounts	144
Mar.18	Purchases	6,200
	Accounts payable		6,200
Mar.20	Cash	856
	Accounts payable	6,200
	Accounts receivable		7,056