Answer:
See the explanation below
Explanation:
Blossom Co. Journal Entries
Date Details DR ($) CR ($)
June 11 Purchases 19,000
Accounts payable 19,000
<em> Being the purchase of merchandise on account</em>
June 15 Account payable 750
Return outward 750
<em>Being the return of a part of the merchandise purchased</em>
Note:
Blossom Co. returned the goods within 10 days, the full amount of the good returned will be charged to the accounts receivable.
Also, assuming that Blossom Co. within 10 days, it will enjoy 2% discount on the outstanding accounts payable and this will be calculated and recorded as follows:
Cash paid within 10 days = (19,000 - 750) × 98% = 17,885
Date Details DR ($) CR ($)
Account payable 17,885
Cash 17,885
<em>Being cash paid for the merchandise purchased</em>
However, if it pays after 10 days, the transactions will be as follows:
Cash paid after 10 days but on or before 30th day = 19,000 - 750 = 17,885
Date Details DR ($) CR ($)
Account payable 18,250
Cash 18,250
<em>Being cash paid for the merchandise purchased</em>
