Question

Brahma Supply Company uses a periodic inventory system. During September, the following transactions and events occurred.
Sept. 4 Purchased 70 backpacks at $50 each from South Slope Company, terms 2/10, n/30.
Sept. 6 Received credit of $300 for the return of 6 backpacks purchased on Sept. 3 that were defective.
Sept. 9 Sold 15 backpacks for $84 each to Outdoor Sports, terms 2/10, n/30.
Sept. 13 Paid South Slope Company in full.
Journalize the September transactions for Brahma Supply Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

Answer:

Date         Account titles & Explanation          Debit     Credit

Sep 04     Purchases (70 backpacks*$50)    $3,500

                        Accounts payable                                    $3,500

Sep 06     Accounts payable                           $300

                         Purchase return and allowances            $300

Sept 09   Accounts receivable                        $1,260

               (15 backpacks*$84)

                          Sales                                                         $1,260

Sept 13    Accounts payable                              $3,200

               (64 backpacks*$50)

                       Purchase discount (3,200*2%)                  $64

                        Cash (3,200*98%)                                      $3,136