Respuesta :
Answer:
See below for the journals.
Step-by-step explanation:
Note: The instructions of the question are as follows:
Instructions
(a) Prepare the journal entries to record these transactions on the books of Bramble Co. using a periodic inventory system.
(b) Assume that Bramble Co. paid the balance due to Tamarisk Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
The journal entries will look as follows:
(a) Prepare the journal entries to record these transactions on the books of Bramble Co. using a periodic inventory system.
Date Details Debit ($) Credit ($)
April 5 Inventory - merchandise 41,700
Accounts Payable 41,700
(To record the purchase of merchandise inventory on account from Tamarisk.)
April 6 Inventory 790
Cash credit 790
(To record the payment of freight costs on merchandise.)
April 7 Equipment 27,100
Accounts Payable 27,100
(To record the purchase equipment on account.)
April 8 Accounts Payable 5,700
Inventory 5,700
(To record the return of damaged merchandise to Tamarisk.)
April 15 Accounts Payable (w.1.) 36,000
Cash (w.3.) 35,280
Inventory (discount) (w.2.) 720
(To record the payment of the amount due to Tamarisk Company in full.)
(b) Assume that Bramble Co. paid the balance due to Tamarisk Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Date Details Debit ($) Credit ($)
May 04 Accounts payable (w.1.) 36,000
Cash 36,000
(To record the payment of the amount due to Tamarisk Company in full.)
Working:
For the payment made on April 15, this implies the payment was made within 10 days and that Bramble Co. will enjoy 2% discount. Therefore, we have:
w.1. Accounts payable = Beginning inventory – Returns = $41,700 - $5,700 = $36,000
w.2. Discount = w.1. * 2% = $36,000 * 2% = $720
w.3. Cash = w.1. – w.2. = $36,000 - $720 = $35,280
