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 in (a) 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.

Answer 1

Date	General Journal	Debit	Credit
Mar. 1	Merchandise Inventory	$88,200
	Accounts Payable-Wright Co.		$88,200
Mar. 9	Accounts Payable-Wright Co.	$88,200
	Cash		$88,200
Mar. 11	Accounts Payable-Wright Co.	$17,640
	Merchandise Inventory		$17,640
Mar. 18	Merchandise Inventory	$10,000
	Accounts Payable-Wright Co.		$10,000
Mar. 20	Cash	$7,640
	Accounts Payable-Wright Co.		$7,640