Exercise 51 This information relates to Cullumber Co 1 On Ap

Exercise 5-1 This information relates to Cullumber Co.. 1. On April 5, purchased merchandise from Oriole Company for $26,600, terms 4/10, n/30 2. On April 6, paid freight costs of $630 on merchandise purchased from Oriole Company 3. On April 7, purchased equipment on account for $33,900 4. On April 8, returned $5,100 of April 5 merchandise to Oriole Company. 5. On April 15, paid the amount due to Oriole Company in full. Prepare the journal entries to record the transactions listed above on Cullumber Co.\'s books. Cullumber Co. uses a perpetual inventory system. (If no entry is required, select \"No Entry\" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Date Account Titles and Explanation Debit Credit 2. 3. 4.

Solution

Solution a:

Solution b:

Journal Entries
Date	Particulars	Debit	Credit
5-Apr	Purchases Dr	$26,600.00
	To Accounts Payable		$26,600.00
	(To record purchase of Merchandise)
6-Apr	Freight Inward Dr	$630.00
	To Cash		$630.00
	(To record freight costs on merchandise purchased)
7-Apr	Equipment Dr	$33,900.00
	To Account Payable		$33,900.00
	(To recod purchase of equipment on account)
8-Apr	Accounts Payable Dr	$5,100.00
	To Purchase returns		$5,100.00
	(To record return of merchandise)
15-Apr	Accounts Payable Dr	$21,500.00
	To Cash		$20,640.00
	To Purchase discount ($21500*4%)		$860.00
	(To record payment due to merchandise purchase)