Purchased 600 units of product at a cost of 10 per unit Term

Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2/10, n/60; the invoice is dated November 5.

Prepare journal entries to record each of the merchandising transactions assuming that the PERIODIC inventory system is used.

Nov.	5	Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2/10, n/60; the invoice is dated November 5.
Nov.	7	Returned 25 defective units from the November 5 purchase and received full credit.
Nov.	15	Paid the amount due from the November 5 purchase, less the return on November 7.

Journal entry ;

Date	account & explanation	debit	credit
Nov 5	Purchase	6000
	Account payable		6000
	(To record purchase)

Nov 7	Account payable (25*10)	250
	Purchase return and allowance		250
	(To record purchase return)

Nov 15	Account payable (6000-250)	5750
	Cash (5750*98%)		5635
	Purchase discount		115
	(To record amount paid)