Question

Bramble Corp. records purchases at net amounts. On May 5 Bramble purchased merchandise on account, $92000, terms 2/10, n/30. Bramble returned $6200 of the May 5 purchase and received credit on account. At May 31 the balance had not been paid. The amount to be recorded as a purchase return is

Answer 1

Answer:

$6,076

Explanation:

the journal entries are:

May 5, merchandise purchased on account

Dr Purchases 90,160

    Cr Accounts payable 90,1600

May ?, defective merchandise returned

Dr Accounts payable 6,076

    Cr Purchases returns 6,076

When a company uses the periodic inventory system, it will use the purchases returns account to record any merchandise returns. When it uses a perpetual system, the merchandise inventory account is directly debited (when a purchase is made) or credited (when merchandise is returned).