In: Accounting
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows:
June | 3 | Purchased goods for $4,900 from Diamond Inc. with terms 3/10, n/30. | ||
5 | Returned goods costing $1,500 to Diamond Inc. for credit on account. | |||
6 | Purchased goods from Club Corp. for $1,400 with terms 3/10, n/30. | |||
11 | Paid the balance owed to Diamond Inc. | |||
22 | Paid Club Corp. in full. |
Required:
Assume Ace records discounts using the gross method in a perpetual inventory system. Prepare the journal entries to record each of the payment transactions.