1. On April 5, purchased merchandise from Sunland Company for $27,200, terms 2/1

Question

1. On April 5, purchased merchandise from Sunland Company for $27,200, terms 2/10, n/30. 2. On April 6, paid freight costs of $ 3,200 on merchandise purchased from Sunland Company 3. On April 7, purchased equipment on account for $ 38,200. 4. On April 8, returned some of the April 5 merchandise to Sunland Company, which cost $3,800. 5. On April 15, paid the amount due to Sunland Company in full. Your answer is partially correct. Prepare the journal entries to record these transactions on the books of Blossom Co. using a periodic inventory system. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 27200 April 5 27200 Accounts Payable 3200 April 6 #| | Freight-in 3200 cash 38200 April 7 # Equipment 38200 Accounts Payable

Explanation / Answer

Journal Entries Date General Journal Debit Credit April, 05 Merchandise $27,200     To Sunland Company $27,200 (To Record the purchase of Equipment) April, 06 Merchandise $3,200     To Cash $3,200 (To record the payment of freight ) April, 07 Equipment $38,200     To Account payable $38,200 (to Record the purchase of Equipment on account) April , 08 Sunland Company $3,800      To Merchandise $3,800 (To Record the return of merchandise purhcase) April, 15 Sunland Company ($ 27,200 - $ 3,800 - $ 468) $22,932 Discount on merchandise $468      To Cash $23,400 (To Record the payment of sunland) May, 04 Sunland Company ($ 27,200 - $ 3,800 ) $23,400      To Cash $23,400 (To Record the payment of sunland) Note: No discount is allowed after 10 day payment

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