II PROBLEMS 3 Marks 11 Prepare the necessary journal entries

II- PROBLEMS (3 Marks) 11. Prepare the necessary journal entries to record the following transactions, assuming Barone Company uses a perpetual inventory system. (a) Purchased $30,000 of merchandise on account, terms 2/10, n/30 (b) Returned $500 of damaged merchandise for credit. (c) Paid for the merchandise purchased within 10 days General Journal Solution Debit Credit Date Accounts Title Page No S

Solution

Debit Credit a) Merchandise Inventory 30000 Accounts Payable 30000 (being merchandise purchased on credit) b) Accounts Payable 500 Merchandise Inventory 500 (to record return of damaged merchandise) calculations c) Accounts Payable 29500 30000-500 Merchandise Inventory 590 29500*0.02 discount cash 28910 (being amount paid on account within discount period)