Record the journal entries: Jan 15 Purchased 10 shirts at 4.50 each and paid cas

Question

Record the journal entries:

Jan 15 Purchased 10 shirts at 4.50 each and paid cash.

Jan 31 purchased 50 shirts on account at 5 dollars each. Terms were 2/10 n30

Feb 8 paid the supplier for the shirts purchased on Jan 31

Feb 10 Realized four shirts from Jan 15 order were printed wrong and returned them for a cash refund

March 5 purchased 100 shirts on account at 4.75 each. terms were 3/15 n30

March 10 called the supplier and told it some of the shirts were the wrong color. The supplier offered a $50 allowance on sale, which we accepted (the company)

Explanation / Answer

Ans)

Jan-15 Purchase A/c Dr 45 To Cash 45 Being Shirt purchase Jan-31 Purchase A/c Dr 250 To Creditor 250 Being Shirt purchase on credit Feb-08 Creditor   A/c Dr 250 To Cash 250 Being paid to creditor Feb-10 Cash A/c Dr 75 Purchase return A/c 75 Being Shirt Return Mar-05 Purchase A/c Dr 475 To Creditor 475 Being Shirt purchase on credit Mar-10 Due to Shirt colour wrong the company should return the shirt and get refund If refundable amount is more then company should refund the shirt or otherwise take the discount 50$

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