Question

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. August 10 Purchased merchandise on account, $31,400, terms 2/10, n/30. 13 Returned part of the purchase of August 10, $1,500, and received credit on account. 15 Purchased merchandise on account, $36,200, terms 1/10, n/60. 25 Purchased merchandise on account, $42,600, terms 2/10, n/30. 28 Paid invoice of August 15 in full. (a1) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: Prepare general journal entries to record the transactions

Answer 1

Journal Entries
Date	Account Title and explanation	Debit	Credit
Aug, 10	Inventory	$                  31,400
	To Account Payable		$                     31,400
	(To Record the purchase of merchnadise)
Aug, 13	Account Payable	$                     1,500
	To Inventory		$                       1,500
	(To Record the return of merchandise)
Aug,15	Inventory	$                  36,200
	To Account Payable		$                     36,200
	(To Record the purchase of merchnadise)
Aug,25	Inventory	$                  42,600
	To Account Payable		$                     42,600
	(To Record the purchase of merchnadise)
Aug,28	Account Payable	$                  36,200
	To Cash		$                     36,200
	(To Record the payment of Aug, 15 purchase)
	Note: No dscount is allowed because , for discount the time limite is 10 days