Based on the data presented in Exercise 5-14, journalize Belarus Co.’s entries for
(a) The purchase,
(b) The return of the merchandise for credit,
(c) The payment of the invoice within the discount period.
In Exercise 5-14, Sombrero Co., a furniture wholesaler, sells merchandise to Belarus Co. on account, $64,300, terms 2/10, n/30. The cost of the merchandise sold is $38,000. Sombrero Co. issues a credit memo for $13,300 for merchandise returned and subsequently receives the amount due within the discount period. The cost of the merchandise returned is $8,000.