Answer:
Nov 05
Dr Merchandise inventory 9,000
Cr Accounts payable 9,000
Nov 07
Dr Accounts payable 350
Cr Merchandise inventory 350
Nov 15
Dr Accounts payable 8,650
Cr Merchandise inventory 346
Cr Cash 8,304
Explanation:
Preparation of Journal entries
Based on the information given we were told that on Nov. 5 the company Purchased 900 units of product at the amount of $10 per unit which means that the Journal entry will be:
Nov 05
Dr Merchandise inventory 9,000
Cr Accounts payable 9,000
(900 units *$10 per units)
Based on the information given we were told that the company on Nov. 7 Returned 35 defective units from the the month of November 5 purchase in which they received full credit which means that the Journal entry will be:
Nov 07
Dr Accounts payable 350
Cr Merchandise inventory 350
(35*$10 per units)
Based on the information given we were told that the company on Nov. 15 Paid the amount of money due from the month of November 5 purchase in which they minus the return on November 7 which means that the Journal entry will be:
Nov 15
Dr Accounts payable 8,650
(9,000- 350)
Cr Merchandise inventory 346
(4%*8,650)
Cr Cash 8,304
(8,650-346)
