Journal entries
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1. On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30, FOB shipping point.
Date Account Titles and Explanation Debit Credit
2. On April 6, paid freight costs of $900 on merchandise purchased from Allman.
Date Account Titles and Explanation Debit Credit
3. On April 7, purchased equipment on account for $26,000.
Date Account Titles and Explanation Debit Credit
4. On April 8, returned damaged merchandise to Allman Company and was granted a $4,000 allowance for returned merchandise.
Date Account Titles and Explanation Debit Credit
5. On April 15, paid the amount due to Allman Company in full.
Date Account Titles and Explanation Debit Credit
6. Assume that Gilberto Co. paid the balance due to Allman Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Date Account Titles and Explanation Debit Credit
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Solution Summary
The solution contains journal entries for purchases,freight incurred,purchase of equipemt, payment towards trade purchases and equipment, purchase returns and discount availed.
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1. On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30, FOB shipping point.
Date Account Titles and Explanation Debit Credit
Purchases a/c Dr 20000
To Allman a/c 20000
Being purchases made on credit from Allman
2. On April 6, paid freight costs of $900 on merchandise purchased from Allman.
Date Account Titles and ...
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