Marshall Supplies is a janitorial supply store. Marshall Supplies uses perpetual inventory. Use a General Journal to journalize the following four transactions during the month of July:
| (a) | On July 4th, Marshall purchases inventory for sale from Tidy Wholesalers for $8,500.00 with terms 1/10, n/30. |
| (b) | On July 5th, Marshall pays Express Transfer $45 for freight-in on the July 4th order. |
| (c) | On July 12th, Marshall buys an additional $11,985 in inventory from Tidy Wholesalers with terms 1/10, n/30. |
| (d) | On July 22nd, Marshall pays Tidy Wholesalers the balance due. |
Darshita Changed status to publish February 17, 2020
Answer:
| Date: | Account Title | Debit: | Credit: |
| Jul-04 | Merchandise Inventory | 8500 | |
| A/P – Tidy Wholesalers | 8500 | ||
| Jul-05 | Merchandise Inventory | 45 | |
| Cash | 45 | ||
| Jul-12 | Merchandise Inventory | 11985 | |
| A/P – Tidy Wholesalers | 11985 | ||
| Jul-22 | A/P – Tidy Wholesalers | 20485 | |
| Cash | 20365.15 | ||
| Merchandise Inventory | 119.85 | ||
Working
| Computation of payment: | ||
| Purchase July 4th: – Discount period expired | $8,500.00 | |
| Purchase July 12th: | $11,985.00 | |
| Discount – 1% of balance: | 119.85 | |
| Amount due on purchase | 11865.15 | |
| Cash paid: | $20,365.15 |
Darshita Changed status to publish February 17, 2020
