Question

May,3 Bought merchandise on account from Huffy, $2,750, invoice D873, dated May 1; terms 1/10 N30; freight prepaid and added to the invoice, $85.50. Invoices totals $2,835.50.

May, 20 Received credit memo no. 234, $335, from Huffy for merchandise returned (May 3 purchase).

A. In which journal each transaction should be recorder.

B. post how the entries are recorded in the journal.

Answer 1

Requirement A:

Each transaction should be recorded in GENERAL JOURNAL

Requirement B:

Date	General journal	Debit	Credit
May.03	Inventory	$    2,750
	Account Payable		$    2,750
	(To record inventory purchased on account)
May.03	Inventory	$   85.50
	Cash		$         86
	(To record freight charges paid)
May.20	Account Payable	$       335
	Inventory		$       335
	(To record inventory returned and received credit)