Question

review the following transactions, and prepare any necessary journal entries for sewing masters inc. a. on october 3, sewing masters inc. purchases 800 yards of fabric (fabric inventory) at $9.00 per yard from a supplier, on credit. terms of the purchase are 1/5, n/40 from the invoice date of october 3. b. on october 8, sewing masters inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. terms of the purchase are 5/10, n/20 from the invoice date of october 8. c. on october 18, sewing masters pays cash for the amount due to the fabric supplier from the october transaction. d. on october 23, sewing masters pays cash for the amount due to the fabric supplier from the october 3 transaction.

Answer 1

date	Account & explanation	Debit	Credit
3 oct	Purchase a/c dr (800*9)	$7200
	To accounts payable		$7200
	( to record credit purchase)
8 oct	Purchase a/c dr (300*9.25)	$2775
	To accounts payabl		$2775
	(to record credit purchase)
18 oct	accounts payable dr	$2775
	To discount receive (2775*5%)		$139
	To cash		$2636
	(cash payment of 8 oct purchase )
23 oct	accounts payable dr	$7200
	to cash		$7200
	( record cash payment on 3 oct transection )

credit. terms of the purchase are 1/5 n 40 means if sewing master inc  pay within 5 days it will receive discount 1%

but for 3 oct transection co pay on 23 oct so co. can not recive any dicount on payment thats areson to co have to pay full amount