Question 4 (15 points) Alpha Company used the periodic inventory system for purc

Question

Question 4 (15 points)

Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30. > Alpha Company sold on account merchandise to Bravo Company on May 2, 2016. Selling price was $4,000. > Bravo Company returned to Alpha Company on May 3, 2016 merchandise in the amount of $400. Use this information to prepare Alpha Company's General Journal entry (without explanation) for the payment for merchandise on May 15.

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit May 15 Cash (4000-400) 3600 Account receivable 3600 (To record amount received)

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