Question

This information relates to Blossom Co..

1. On April 5, purchased merchandise from Sunland Company for $28,800, terms 4/10, n/30.

2. On April 6, paid freight costs of $620 on merchandise purchased from Sunland Company.

3. On April 7, purchased equipment on account for $34,200.

4. On April 8, returned $3,500 of April 5 merchandise to Sunland Company.

5. On April 15, paid the amount due to Sunland Company in full.

Prepare the journal entries to record the transactions listed above on Blossom Co.’s books. Blossom Co. uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Assume that Blossom Co. paid the balance due to Sunland Company on May 4 instead of April 15. Prepare the journal entry to record this payment. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

		Debit	Credit
April 5	Inventory	28800
	Accounts payable		28800
April 6	Inventory	620
	Cash		620
April 7	Equipment	34200
	Accounts payable		34200
April 8	Accounts payable	3500
	Inventory		3500
April 15	Accounts payable	25300
	Inventory		1012	=25300*4%
	Cash		24288
2
May 4	Accounts payable	25300
	Cash		25300