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Purchase-Related Transactions
Journalize entries for the following related transactions of Manville Heating & Air Company:
a. Purchased $32,000 of merchandise from Wright Co. on account, terms 2/10, 1/30.
Merchandise Inventory
31,360
Merchandise Inventory v
31,360
Payable-Wright Co.
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a. A purchase increases inventory and the amount that is owed on account.
and the
b. Paid the amount owed on the invoice within the
the discount period.
Accounts Payable-Wright Co.
18/5
Cash
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b. A payment of the
the discount, and records
discount period reduces Accounts
Payable for the amo
the amount of the invoice, reduces Cash for the amount of the invoic
a reduction in Merchandise Inventory.
c. Discovered that $6,400 of the merchandise purchased in (a) was defective and returned items, receiving credit.
Accounts Payable-Wright Co. 24.960 x