Information related to Windsor, Inc. is presented below. 1. On April 5, purchased merchandise on account from Pina Colada Company for $27,900, terms 4/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $700 on merchandise purchased from Pina Colada.
3. On April 7, purchased equipment on account for $28,800.
4. On April 8, returned $3,900 of merchandise to Pina Colada Company.
5. On April 15, paid the amount due to Pina Colada Company in full.

Required:
a. Prepare the journal entries to record these transactions on the books of Windsor, Inc. under a perpetual inventory system.
b. Prepare the journal entries to record these transactions on the books of Windsor, Inc. under a perpetual inventory system.

April 5

Dr Inventory $27,900

Cr Accounts Payable $27,900

April 6

Dr Inventory $700

Cr Cash $700

April 7

Dr Equipment $28,800,

Cr Accounts Payable $28,800

On April 8

Dr Accounts Payable $3,900

Cr Inventory $3,900

On April 15

Dr Accounts Payable (Inventory before discounts) $24,000

Cr Cash (Inventory after discounts) $23,040

Cr Inventory (discounts) $960

Explanation:

Preparation of the journal entries to record these transactions on the books of Windsor, Inc. under a perpetual inventory system.

April 5

Dr Inventory $27,900

Cr Accounts Payable $27,900

April 6

Dr Inventory $700

Cr Cash $700

April 7

Dr Equipment $28,800,

Cr Accounts Payable $28,800

On April 8

Dr Accounts Payable $3,900

Cr Inventory $3,900

On April 15

Dr Accounts Payable (Inventory before discounts) $24,000

($27,900 - $3,900 = $24,000)

Cr Cash (Inventory after discounts) $23,040

($24,000-$960)

Cr Inventory (discounts) $960

($24,000 * 0.04 = $960)

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.