Stylon Co., a women's clothing store, purchased $13,000 of merchandise from a supplier on account, terms FOB destination, 1/10, n/30 using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $2,100, receiving a credit memo. a. Journalize Stylon's entry to record the purchase. If an amount box does not require an entry, leave it blank.

b. Journalize Stylon's entry to record the merchandise return. If an amount box does not require an entry, leave it blank.

c. Journalize Stylon's entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank.

d. Journalize Stylon's entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank.

Question

Business

London Huffman

3 February, 10:41

Stylon Co., a women's clothing store, purchased $13,000 of merchandise from a supplier on account, terms FOB destination, 1/10, n/30 using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $2,100, receiving a credit memo. a. Journalize Stylon's entry to record the purchase. If an amount box does not require an entry, leave it blank.

b. Journalize Stylon's entry to record the merchandise return. If an amount box does not require an entry, leave it blank.

c. Journalize Stylon's entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank.

d. Journalize Stylon's entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank.

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Answers (1)

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Alissa · Answer 1

Dr. Inventory ... 13,000

Cr. Accounts Payable ... 13,000

Explanation:

Stylon Co., a women's clothing store, purchased $13,000 of merchandise from a supplier on account, terms FOB destination, 1/10, n/30 using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $2,100, receiving a credit memo.

a. Journalize Stylon's entry to record the purchase. If an amount box does not require an entry, leave it blank.

Dr. Inventory ... 13,000

Cr. Accounts Payable ... 13,000

b. Journalize Stylon's entry to record the merchandise return. If an amount box does not require an entry, leave it blank.

Dr. Accounts Payable ... 2.100

Cr. Inventory ... 2,100

c. Journalize Stylon's entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank.

In this case there will be discount credited to the inventory account

Dr. Accounts Payable ... (13000-2100) ... 10,900

Cr. Inventory ... 109

Cr. Cash ... 10,791

d. Journalize Stylon's entry to record the payment beyond the discount period of 10 days.

In this case there will be no discount credited to the inventory account

Dr. Accounts Payable ... (13000-2100) ... 10,900

Cr. Cash ... 10,900