Boston Dollar Store uses the gross method to record purchase discounts, and uses a perpetual inventory system.

Question:

"Boston Dollar Store uses the gross method to record purchase discounts, and uses a perpetual inventory system. Boston engaged in the following transactions during April: 

4/12 Purchased $15,000 in merchandise subject to terms of 2/10, n30. The goods were shipped f.o.b. shipping point.

4/13 Received a billing from Orange Freight Lines for $300 for the 4/12 purchase.

4/15 Returned $1,000 of merchandise from the 4/12 purchase.

4/20 Paid balances due from 4/12 purchase.


Required:

Prepare journal entries to record the above transactions. 


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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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