Question

This information relates to Windsor Co. 1. On April 5, purchased merchandise from Wildhorse Company for $25,100, terms 2/10, n/30. 2. On April 6, paid freight costs of $530 on merchandise purchased from Wildhorse. 3. On April 7, purchased equipment on account for $32,500. 4. On April 8, returned $3,600 of April 5 merchandise to Wildhorse Company. 5. On April 15, paid the amount due to Wildhorse Company in full. Prepare the journal entries to record the transactions listed above on Windsor Co.’s books. Windsor 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.) No. Date Account Titles and Explanation Debit Credit 1. choose a transaction date enter an account title enter a debit amount

Answer 1

Answer:

1. 5 April ; Debit merchandise 25100, Credit accounts Payable 20080 and bank 5020

2.6 April; Debit freight cost 530, credit bank 530

3. 07 April Debit Equipment 32500, Credit Accounts payable 32500

4. 08 April Debit Accounts payable 3600, Credit Merchandise 3600

5. 15 April  Debit accounts payable 20080, Credit Bank 20080

Explanation:

First transaction had terms 2/10 upfront

then we take the amount owing of 25100*2/10= 5020 paid that day.

last transaction is the payment of that balance owing.