Ask Question
6 January, 17:00

Stylon Co., a women's clothing store, purchased $48,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $7,500, 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.

+5
Answers (1)
  1. 6 January, 19:46
    0
    Stylon Company.

    General Journal

    Net Method

    The following entries have been passed using net method.

    Sr. No Particulars Debit Credit

    a. Merchandise Inventory 47040

    Accounts Payable 47040

    Purchased $48,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system

    b. Accounts Payable 7350

    Merchandise Inventory 7350

    Stylon returned merchandise with an invoice amount of $7,500,

    c. Accounts Payable 39690

    Cash 39690

    Stylon's entry to record the payment within the discount period of 10 days

    d. Discount Lost 810

    Accounts Payable 810

    Accounts Payable 40500

    Cash 40500

    Stylon's entry to record the payment beyond the discount period of 10 days.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Stylon Co., a women's clothing store, purchased $48,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers