Question

Sandhill Co. records purchases at net amounts and uses periodic inventories. Prepare entries for the following: June 11 Purchased merchandise on account, $18,500, terms 3/10, n/30. 15 Returned part of June 11 purchase, $700, and received credit on account. 30 Prepared the adjusting entry required for financial statements.

Answer 1

Date	Particulars	Debit	Credit
11- June	Merchandise Inventory (18500*0.97)	$ 17,945
	Accounts Payable		$ 17,945
	( Being Purchase of merchandise on account)
15 - June	Accounts Payable (700*.97)	$ 679
	Merchandise Inventory		$ 679
	(Being purchase return)
30 - June	Purchased Discount Lost A/c (17,800*0.03)	$ 534
	Accounts Payable		$ 534
	( To Record Adjusting entry required on June 30 )

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