Question

Journalize the following purchase transactions for Main Street Office Supplies using the periodic inventory system and then using the same information, journalize the purchase transactions using the perpetual inventory system. Explanations are not required.

May 12	Main Street buys $167,500 worth of merchandise inventory on account with credit terms of 2/10, n/30.
May 16	Main Street returns $18,600 of the merchandise to the vendor due to damage during shipment.
May 21	Main Street pays the amount due.

Answer 1

Periodic Inventory:

Date	General Journal	Debit	Credit
12th may	Purchase	$167,500	-
	Accounts payable	-	$167,500
16th may	Accounts payable	$18,600	-
	Purchase returns and allowances	-	$18,600
21st may	Accounts payable	$148,900	-
	Purchase returns and allowances	-	$2,978
	Cash	-	$145,922

Perpetual Inventory:

Date	General Journal	Debit	Credit
12th may	Merchandise inventory	$167,500	-
	Accounts payable	-	$167,500
16th may	Accounts payable	$18,600	-
	Merchandise inventory	-	$18,600
21st may	Accounts payable	$148,900	-
	Merchandise Inventory	-	$2,978
	Cash	-	$145,922