Question

Journalize the following transactions for Rogers Company using the gross method of accounting for purchase discounts. Assume a perpetual inventory system. June 10 Purchased goods from Henderson Company on account, $6,000, terms 4/10, n/30. June 16 Returned merchandise to Henderson Company that was previously purchased on account, $600. June 20 Paid the amount due to Henderson Company.

Answer 1

Answer:

June 10

Inventory debit 6,000

Account Payable credit6,000

June 16

Account Payable debit 600

Inventory credit 600

June 20

Account Payable debit 5,400

Cash credit 5,400

Explanation:

June 10:

Inventory is an asset account, increase from debit.

The merchandise are not being paid, so the Rogers has an "account to pay"

June 16

The amount due decrease. It also decreases the value of our inventory.

Both account decrease by the amount returned.

June 20

The account is settle. Rogers may full payment of the account, which is invoince nominal less return 6,000 - 6,00 = 5,400