Answer:
Wildhorse Co.’s books
Perpetual Inventory System
Date Account Dr. Cr
5 April Merchandise Inventory $28,200
Accounts/ Notes Payable $28200
Purchased merchandise from Carla Vista Company for $28,200, terms 2/10, n/30.
6 April Freight Charges $ 710
Cash $ 710
Paid freight costs of $710
7 April Equipment $ 33200
Accounts Payable $ 33,200
Purchased equipment on account for $33,200.
8 April Accounts Payable $3800
Merchandise Inventory $ 3800
Returned $3,800 of April 5 merchandise
15 April Accounts Payable $ 24,400
Purchases Discount 488
Cash $ 23,912
Paid the amount due ($28,200- $3800= $24,400)
2% of $ 24,400= $ 488
b. Payment of balance due on May 4 instead of Apr 5
4 May Accounts Payable $ 24,400
Cash $ 24,400
