Alpha Company used the periodic inventory system for purchase & sales of merchan

Question

Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used. Alpha Company purchased on account $2,700 of merchandise from Bravo Company on May 2, 2016. Alpha Company returned, to Bravo Company, $300 of this merchandise on May 3, 2016. >Freight charges related to this transaction of $150 were paid by Bravo Company. Use this information to prepare Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."

Explanation / Answer

Ans. Date Titles and Explanations Dr.($) Cr.($) 2-May Marchendise Purchase               2,700     To Bravo Company               2,700 3-May Bravo company                   300     To Merchandise Purchase Return                   300 Delivery Expense                   150     To Cash                   150

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