Answer:
See below for the journals.
Step-by-step explanation:
Note: The instructions of the question are as follows:
Instructions
(a) Prepare the journal entries to record these transactions on the books of Bramble Co. using a periodic inventory system.
(b) Assume that Bramble Co. paid the balance due to Tamarisk Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
The journal entries will look as follows:
(a) Prepare the journal entries to record these transactions on the books of Bramble Co. using a periodic inventory system.
<u>Date Details Debit ($) Credit ($) </u>
April 5 Inventory - merchandise 41,700
Accounts Payable 41,700
<u> (To record the purchase of merchandise inventory on account from Tamarisk.)</u>
April 6 Inventory 790
Cash credit 790
<u> (To record the payment of freight costs on merchandise.) </u>
April 7 Equipment 27,100
Accounts Payable 27,100
<u> (To record the purchase equipment on account.) </u>
April 8 Accounts Payable 5,700
Inventory 5,700
<u> (To record the return of damaged merchandise to Tamarisk.)</u>
April 15 Accounts Payable (w.1.) 36,000
Cash (w.3.) 35,280
Inventory (discount) (w.2.) 720
<u> (To record the payment of the amount due to Tamarisk Company in full.)</u>
(b) Assume that Bramble Co. paid the balance due to Tamarisk Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
<u>Date Details Debit ($) Credit ($) </u>
May 04 Accounts payable (w.1.) 36,000
Cash 36,000
<u> (To record the payment of the amount due to Tamarisk Company in full.)</u>
Working:
For the payment made on April 15, this implies the payment was made within 10 days and that Bramble Co. will enjoy 2% discount. Therefore, we have:
w.1. Accounts payable = Beginning inventory – Returns = $41,700 - $5,700 = $36,000
w.2. Discount = w.1. * 2% = $36,000 * 2% = $720
w.3. Cash = w.1. – w.2. = $36,000 - $720 = $35,280