Requirements 1. Journalize the purchase transactions. Explanations are not requi

Question

Requirements

1.Journalize the purchase transactions. Explanations are not required.

2.In the final analysis, how much did the inventory cost Partytime Toys?

Date Accounts and Explanations Debit Credit Oct.8 Oct. 11 Oct. 15 Partytime Toys buys $141,800 worth of MegoBlock toys on account with credit terms of 2/10, n/30. Partytime Toys returns $14,100 of the merchandise to MegoBlock due to damage during shipment. Partytime Toys paid the amount due, less the return and discount Oct. 8 11 15 Copyright © 2016 Pearson Education, Inc.

Explanation / Answer

Answer:

JOurnal:

Oct 8: Purchases Dr. $141,800

To Accounts PAyable Cr. 141800

Oct 11: Account Payable 14100

   To Purchase Return A/c Cr 14100

Oct 15 Account Payable A/c 127700 {141800 - 14100}

To discount Received A/c Cr (Income summary) 2554  (141800 - 14100)*2/100 }

To Cash/Bank 125146(127700 - 2554)

Thanks

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