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Accounting Question - Need Help?
a) The company purchased $9,300 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.
b) The company received a $486 credit memorandum from Kansas Corp. concerning the merchandise returned on January 24.
c) The company paid Kansas Corp. for the balance due, net of the cash discount, less the $486 amount in the credit memorandum.
In the General Journal for (c) I posted:
Accounts Payable: 8814
Cash: 88
Merchandise: 8726
This is coming up incorrect, what am I doing wrong?
That answer shows up incorrect as well!
No, you were right and I was wrong! Thank you so much! Please contact me if you can. I am interested in your help as a Tutor, willing to pay! Thanks
2 Answers
- ?Lv 710 years agoFavorite Answer
transaction (b) has nothing to do with transaction (a). If you notice, the credit memo received in (b) is for merchandis returned on the 24th. While the transaction for (a) was on the 26th. In that case, the calculation would be:
9,300 x 1% = $93 discount
9,300 - 486 = $8,814 A/P
8,814 - 93 = $8,721 cash paid
Dr Accounts Payable 8,814
Cr Cash 8,721
Cr Merchandise Inventory 93
Source(s): Accounting Fan - 5 years ago
The company purchased $7,600 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
