Question

E5.2 (LO 2), AP This information relates to Rice Co. Journalize purchase transactions. 1. On April 5, purchased merchandise on account from Jax Company for $28,000, terms 2/10, n/30. 2. On April 6, paid freight costs of $700 on merchandise purchased from Jax. 3. On April 7, purchased equipment on account for $30,000. 4. On April 8, returned $3,600 of April 5 merchandise to Jax Company. 5. On April 15, paid the amount due to Jax Company in full. Instructions a. Prepare the journal entries to record the transactions listed above on Rice Co.'s books. Rice Co.

Answer 1

Answer:

A. Apr 5

Dr Merchandise inventory 28000

Cr Account payable 28000

Apr 6

Dr Merchandise inventory 700

C Cash 700

Apr 7

Dr Equipment 30000

Cr Account payable 30000

Apr 8

Dr Account payable 3600

Cr Merchandise inventory 3600

Apr 15

Dr Account payable 24400

Cr Cash 23912

Cr Merchandise inventory 488

B) Dr Account payable 24400

Cr Cash 24400

Explanation:

A. Preparation of the journal entries to record the transactions listed above on Rice Co.'s books. Rice Co.

Apr 5

Dr Merchandise inventory 28000

Cr Account payable 28000

Apr 6

Dr Merchandise inventory 700

C Cash 700

Apr 7

Dr Equipment 30000

Cr Account payable 30000

Apr 8

Dr Account payable 3600

Cr Merchandise inventory 3600

Apr 15

Dr Account payable (28000-3600) 24400

Cr Cash 23912

Cr Merchandise inventory 488

B. may 4

Dr Account payable (28000-3600) 24400

Cr Cash 24400