Question: Refer to the information for Mathis and Reece Companies above Mathis

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.

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  • CreatedSeptember 22, 2015
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