LS More Info Jun 20 Purchased inventory of 5100 on account f

LS More Info Jun 20 Purchased inventory of $5,100 on account from Southbound Diamonds a jewelry importer. Terms were 3/15, n/45, FOB shipping point. 20Paid freight charges, $300 Terms were 3/15, n/45, FOB shipping point Ju 4Returned $400 of inventory to Southbound. 14Paid Southbound Diamonds, less return 16Purchased inventory of $4,300 on account from Swift Diamonds, a jewelry importer. Terms were 3/10, n/EOM, FOB destination. 18Received a $600 allowance from Swift for damaged but usable goods 24Paid Swift Diamonds, less allowance and discount. PrintDone

Solution

Date Accounts title Dr. Cr. june 20 Merchandise inventory 5100 To Accounts payable 5100 june 20 Merchandise inventory 300 To cash 300 July 4 Accounts payable 400 To Merchandise inventory 400 July 14 Accounts payable 4700    To Cash [5100 - 400] 4700 July 16 Merchandise inventory 4300 To Accounts payable 4300 July 18 Accounts payable 600 To Merchandise inventory 600 July 24 Accounts payable [4300 - 600] 3700    To Merchandise inventory [3700 * 3%] 111 To Cash [3700 -111] 3589