Question

Refer to the information for Mathis and Reece Companies above.
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225.
b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse.
c. On April 8, Mathis returned $800 of the merchandise. The cost of the merchandise returned was $500.
d. On April 10, Mathis paid Reece the balance due.
Required:
1. Prepare the journal entry to record the April 1 purchase of merchandise and payment of freight by Mathis.
2. Prepare the journal entry to record the April 8 return of merchandise.
3. Prepare the journal entry to record the April 10 payment to Reece.


$1.99
Sales0
Views47
Comments0
  • CreatedSeptember 22, 2015
  • Files Included
Post your question
5000