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Accounting for Perpetual Inventory Transactions

Information related to Steffens Co. is presented below.
1. On April 5, purchased merchandise from Bryant Company for $43,300 terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $1,059 on merchandise purchased from Bryant.
3. On April 7, purchased equipment on account for $31,690.
4. On April 8, returned damaged merchandise to Bryant Company and was granted a $5,700 credit for returned
5. On April 15, paid the amount due to Bryant Company in full
(a) Prepare the journal entries to record these transactions on the books of Steffens Co. under a perpetual inventory
system. (For multiple debit/credit entries, list amounts from largest to smallest e.g., 10, 5, 3, 2.)
(b) Assume that Steffens Co. paid the balance due to Bryant Company on May 4 instead of April 15. Prepare the journal
entry to record this payment.

Solution Summary

This solution illustrates how to account for perpetual inventory transactions, including discounts taken.