Answer:
a.
Merchandise Inventory 60,000
Accounts Payable 60,000
b.
Accounts Payable 12,000
Merchandise Inventory 12,000
Accounts Payable 48,000
c.
Cash 47,040
Merchandise Inventory 960
EX 6-6 Purchase-related transactions
Paramount Co., a women’s clothing store, purchased $60,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Paramount Co. returned $12,000 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period. Journalize Paramount Co.’s entries to record (a) the purchase, (b) the merchandise return, and (c) the payment.
Answer:
a.
Merchandise Inventory 60,000
Accounts Payable 60,000
b.
Accounts Payable 12,000
Merchandise Inventory 12,000
Accounts Payable 48,000
c.
Cash 47,040
Merchandise Inventory 960
Answer:
a.
Merchandise Inventory 60,000
Accounts Payable 60,000
b.
Accounts Payable 12,000
Merchandise Inventory 12,000
Accounts Payable 48,000
c.
Cash 47,040
Merchandise Inventory 960