Question

Presented below are transactions related to Blossom, Inc.

May 10		Purchased goods billed at $12,200 subject to cash discount terms of 2/10, n/60.
11		Purchased goods billed at $14,700 subject to terms of 1/15, n/30.
19		Paid invoice of May 10.
24		Purchased goods billed at $8,700 subject to cash discount terms of 2/10, n/30.

Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Presented below are transactions related to Blossom, Inc.

May 10		Purchased goods billed at $12,200 subject to cash discount terms of 2/10, n/60.
11		Purchased goods billed at $14,700 subject to terms of 1/15, n/30.
19		Paid invoice of May 10.
24		Purchased goods billed at $8,700 subject to cash discount terms of 2/10, n/30.

Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

General Journal Entry for purchase

Date	Particulars	Debit	Credit
May 10	Purchase a/c Dr To Accounts Payable a/c (Purchased goods for credit net of discount of 2%, expecting payment will maid with in discount period of 10 days) 12200 * (100%-2%) = 11956	11956	11956
May 11	Purchase a/c Dr To Accounts Payable a/c (Purchased goods for credit net of discount of 1%, expecting payment will be maid within discount period of 15 days) 14700 * (100%-1%) = 14553	14553	14553
May 19	Accounts payable a/c Dr To Cash a/c ( May 10 invoice due is paid off)	11956	11956
May 20	Purchase a/c Dr To Accounts Payable a/c (Purchased goods for credit net of discount of 2%, expecting payment will maid with in discount period of 10 days) 8700 * (100%-2%) = 8526	8526	8526
		46991	46991