Information related to Martinez Co. is presented below.

1. On April 5, purchased merchandise on account from MarinCompany for $33,500, terms 2/10, net/30, FOB shipping point.

2. On April 6, paid freight costs of $910 on merchandise purchased from Marin.

3. On April 7, purchased equipment on account of $44,400.

4. On April 8, returned damaged merchandise to MarinCompany and was granted a $6,000 credit for returned merchandise.

5. On April 15, paid the amount due to Marin Company in full.

Required:

A. Prepare the journal entries to record these transactions on the books of Martinez Co. under a perpetual inventory system.

No.	Date	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.

B. Assume that Martinez Co. paid the balance due to MarinCompany on May 4 instead of April 15.

Prepare the journal entry to record this payment.

Date	Account Titles and Explanation	Debit	Credit

Answer rating: 100% (QA)

Answer Explanation Apr05 Merchandise Inventory 33500 Acc... View the full answer