Using the information in QS 5 through QS 7, prepare journal entries to record each of the transactions of the merchandising companies assuming a periodic inventory system.
In QS 5
May 1 Purchased $1,200 of merchandise inventory; terms 1/10, n/30.
14 Paid for the May 1 purchase.
15 Purchased $3,000 of merchandise inventory; terms 2/15, n/30.
30 Paid for the May 15 purchase, less the applicable discount.
In QS 6
Aug. 2 Purchased $14,000 of merchandise inventory; terms 1 /5, n/15.
4 Received a credit memorandum from the supplier confirming a $1,500 allowance regarding the August 2 purchase.
17 Paid for the August 2 purchase, less the allowance.
In QS 7
Mar. 5 Purchased 500 units of product with a list price of $5 per unit. The purchaser was granted a trade discount of 20% and the terms of the sale were 2/10, n/60.
7 Returned 50 defective units from the March 5 purchase and received full credit.
15 Paid the amount due resulting from the March 5 purchase, less the return on March 7 and applicable discount.