Question

Record each of the following transactions, in chronological order, using T accounts, assuming the perpetual inventory system is used: Aug. 2 Purchased merchandise on credit from Vera Company, invoice dated August 1, terms n/10, FOB shipping point, $1,150. 3 Received bill from Strauss Shipping Company for transportation costs on August 2 shipment, invoice dated August 1, terms n/30, $105. 7 Returned damaged merchandise received from Vera Company on August 2 for credit, $180. 10 Paid in full the amount due to Vera Company for the purchase of August 2, part of which was returned on August 7.

Answer 1

Solution:

Merchandise Inventory
Date	Particulars	Debit	Date	Particulars	Credit
2-Aug	To Accounts payable	$1,150.00	7-Aug	By Accounts payable	$180.00
3-Aug	To Accounts payable (Transportation)	$105.00		Ending balance	$1,075.00
	Total	$1,255.00		Total	$1,255.00

Accounts payable - Vera Company
Date	Particulars	Debit	Date	Particulars	Credit
7-Aug	To Merchandise inventory	$180.00	2-Aug	By Merchandise inventory	$1,150.00
10-gug	To Cash	$970.00
	Total	$1,150.00		Total	$1,150.00

Accounts payable - Strauss Company
Date	Particulars	Debit	Date	Particulars	Credit
	Ending balance	$105.00	3-Aug	By Merchandise inventory	$105.00
	Total	$105.00		Total	$105.00