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.

(a)

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.)

Answer 1

Journal entry :

date	account and explanation	debit	credit
Apr 5	Merchandise inventory	28800
	Account payable		28800
	(To record purchase)
Apr 6	Merchandise inventory	620
	Cash		620
	(To record freight paid)
Apr 7	Equipment	34200
	Account payable		34200
	(To record purchase equipment)
Apr 8	Account payable	3500
	Merchandise inventory		3500
	(To record purchase return)
Apr 15	Account payable (28800-3500)	25300
	Cash		24288
	Merchandise inventory		1012
	(To record amount paid)