Answer:
1. Apr 5
Dr Merchandise inventory $28,800
Cr Account payable $28,800
Apr 6
Dr Merchandise inventory $620
Cr Cash $620
Apr 7
Dr Equipment $34,200
Cr Account payable $34,200
Apr 8
Dr Account payable $3,500
Cr Merchandise inventory $3,500
Apr 15
Dr Account payable $25,300
Cr Cash $24,288
Cr Merchandise inventory $1,012
b) May 4
Dr Account payable $25,300
Cr Cash $25,300
Explanation:
1. Preparation of the journal entries to record the transactions listed above on Blossom Co.’s books. using a perpetual inventory system.
Apr 5
Dr Merchandise inventory $28,800
Cr Account payable $28,800
Apr 6
Dr Merchandise inventory $620
Cr Cash $620
Apr 7
Dr Equipment $34,200
Cr Account payable $34,200
Apr 8
Dr Account payable $3,500
Cr Merchandise inventory $3,500
Apr 15
Dr Account payable $25,300
($28,800-$3500)
Cr Cash (25,300*96%) $24,288
Cr Merchandise inventory $1,012
($25,300-$24,288)
b) Preparation of the journal entry to record this payment.
May 4
Dr Account payable $25,300
($28,800-$3500)
Cr Cash $25,300
