Question

Heston Company purchases inventory with a list price of $7,000 for $6,300 on account. Heston pays a transportation company $200 to deliver the inventory. Upon receipt, Heston notices some defects, contacts the vendor, and receives a $500 allowance. Heston pays the vendor three days later, which qualifies Heston for a 2% discount. Heston uses a perpetual inventory system.
Required
Prepare all journal entries Heston would make to record the preceding activity and calculate Heston's net purchases.


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  • CreatedJuly 16, 2015
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