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 $90,000 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 $18,000 of the merchandise purchased on March 1 was defective and returned items, receiving credit for $17,640 [$18,000 − ($18,000 × 2%)].
	18	Purchased $10,000 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.

X

Chart of Accounts

CHART OF ACCOUNTS

Manville Heating & Air Company

General Ledger

ASSETS 110 Cash 120 Accounts Receivable

Answer 1

Manville Heating & Air Company
Journal entries
Date	Account	Debit	Credit	Calculation
1-Mar	Merchandise Inventory	$     90,000
	Accounts Payable-Wright		$     90,000
9-Mar	Accounts Payable-Wright	$     90,000
	Cash		$     88,200
	Merchandise Inventory		$        1,800	=90,000*2%
11-Mar	Accounts Payable-Wright	$     17,640		=18,000*(1-2%)
	Merchandise Inventory		$     17,640
18-Mar	Merchandise Inventory	$     10,000
	Accounts Payable-Wright		$     10,000
20-Mar	Cash	$        7,640		=17,640-10,000
	Accounts Payable-Wright		$        7,640