Answer:
- June 3 Purchased goods for $7,900 from Diamond Inc. with terms 2/10, n/30.
Merchandise $7,900 Debit
Accounts Payable $7,900 Credit
- 5 Returned goods costing $3,000 to Diamond Inc. for credit on account.
Accounts Payable $3,000 Debit
Merchandise $3,000 Credit
- 6 Purchased goods from Club Corp. for $1,950 with terms 2/10, n/30.
Merchandise $1,950 Debit
Accounts Payable $1,950 Credit
- 11 Paid the balance owed to Diamond Inc.
Accounts Payable $4,900 Debit
Merchandise $98 Credit
Cash $4,802 Credit
- 22 Paid Club Corp. in full.
Accounts Payable $1.950 Debit
Cash $1.950 Credit
Explanation:
First recorded the journal entry of the purchased merchandise.
- June 3 Purchased goods for $7,900 from Diamond Inc. with terms 2/10, n/30.
Merchandise $7,900 Debit
Accounts Payable $7,900 Credit
When merchandise is returned, we make the opposite entry
-
5 Returned goods costing $3,000 to Diamond Inc. for credit on account.
Accounts Payable $3,000 Debit
Merchandise $3,000 Credit
It's recorded again the journal entry of the purchased merchandise.
- 6 Purchased goods from Club Corp. for $1,950 with terms 2/10, n/30.
Merchandise $1,950 Debit
Accounts Payable $1,950 Credit
When the balance is paid it's necessary to register de discount availabe becuase the payment was within 10 days, 2/10.
- 11 Paid the balance owed to Diamond Inc.
Accounts Payable $4,900 Debit
Merchandise $98 Credit
Cash $4,802 Credit
In the case of Club Corp the paid is in full because it's out of the discount period.
- 22 Paid Club Corp. in full.
Accounts Payable $1.950 Debit
Cash $1.950 Credit
