On September 1, Jerry’s Lighting purchased merchandise with a list price of $6,700 with credit terms of 2/10, n/60; freight of $200 prepaid and added to the invoice. On September 3, Jerry’s returns $500 of the merchandise. If payment is made within the discount period, the total amount paid by Jerry’s Lighting is: Tune Tones Instrument Tuning Company owes Mandy Lynn’s Music Studio $6,854 as of November 1. During November, Tune Tones purchased merchandise from Mandy Lynn totaling $9,618 and owes Mandy Lynn $9,202 on November 30, the total payments made by Tune Tones to Mandy Lynn during November:

On September 1, Jerry’s Lighting purchased merchandise with a list price of $6,700 with credit terms of 2/10, n/60; freight of $200 prepaid and added to the invoice. On September 3, Jerry’s returns $500 of the merchandise. If payment is made within the discount period, the total amount paid by Jerry’s Lighting is: Tune Tones Instrument Tuning Company owes Mandy Lynn’s Music Studio $6,854 as of November 1. During November, Tune Tones purchased merchandise from Mandy Lynn totaling $9,618 and owes Mandy Lynn $9,202 on November 30, the total payments made by Tune Tones to Mandy Lynn during November:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 2PB: Record journal entries for the following transactions of Mason Suppliers. A. Sep. 8: Purchased 50...

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Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
Record journal entries for the following transactions of Mason Suppliers. A. Sep. 8: Purchased 50 deluxe hammers at a cost of $95 each from a manufacturer. Credit terms are 5/20, n/60, invoice date September 8. B. Sep. 12: Mason Suppliers returned 8 hammers for a full refund. C. Sep. 16: Mason Suppliers found 4 defective hammers, but kept the merchandise for an allowance of $250. D. Sep. 28: Mason Suppliers paid their account in full with cash.
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