Gadget Palace is a retailer selling unique hardware. Gadget Palace uses perpetual inventory. Use a General Journal to journalize the following four transactions during the month of August:
| (a) | On July 5th, Gadget Palace purchases inventory for sale from Turbo Tools for $11,400.00 with terms 2/10, n/30. |
| (b) | On July 6th, Gadget Palace pays Fast Truck Transport $75 for freight-in on the July 5th order. |
| (c) | Gadget Palace gets a credit memo from Turbo Tools for $215.00 for damaged merchandise on July 8th. |
| (d) | On July 15th, Gadget Palace pays Turbo Tools the balance due. |
Darshita Changed status to publish February 17, 2020
| Date: | Account Title | Debit: | Credit: |
| 38534 | Merchandise Inventory | 11400 | |
| A/P – Turbo Tools | 11400 | ||
| 38899 | Merchandise Inventory | 75 | |
| Cash | 75 | ||
| 39630 | A/P – Turbo Tools | 215 | |
| Merchandise Inventory | 215 | ||
| 42186 | A/P – Turbo Tools | 11185 | |
| Cash | 10961.3 | ||
| Merchandise Inventory | 223.7 | ||
Working
Computation of payment:
| Purchase: | $11,400.00 |
| Less credit memo: | 215.00 |
| Balance: | 11185 |
| Discount – 2% of balance: | 223.70 |
| Cash paid: | $10,961.30 |
Darshita Changed status to publish February 17, 2020
