Some of the transactions of Torres Company during August are

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. August 10 Purchased merchandise on account, $31,400, terms 2/10, n/30. 13 Returned part of the purchase of August 10, $1,500, and received credit on account. 15 Purchased merchandise on account, $36,200, terms 1/10, n/60. 25 Purchased merchandise on account, $42,600, terms 2/10, n/30. 28 Paid invoice of August 15 in full. (a1) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: Prepare general journal entries to record the transactions

Solution

Journal Entries Date Account Title and explanation Debit Credit Aug, 10 Inventory $                  31,400     To Account Payable $                     31,400 (To Record the purchase of merchnadise) Aug, 13 Account Payable $                     1,500     To Inventory $                       1,500 (To Record the return of merchandise) Aug,15 Inventory $                  36,200     To Account Payable $                     36,200 (To Record the purchase of merchnadise) Aug,25 Inventory $                  42,600     To Account Payable $                     42,600 (To Record the purchase of merchnadise) Aug,28 Account Payable $                  36,200     To Cash $                     36,200 (To Record the payment of Aug, 15 purchase) Note: No dscount is allowed because , for discount the time limite is 10 days