Refer to the information for Reece Company 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.
Prepare the journal entries to record these transactions on the books of Reece Company.

  • CreatedSeptember 22, 2015
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