Velez corporation purchased $1000 worth of merchandise, terms 2/10, n/30, from the Manor corporation on May 4, on May 10, Velez returned $100 worth of goods to Manor for full credit.
May 12, the account was paid in full.
Prepare entries in journal form without explanations to record these transactions in
a) velez's records
b) manors records
Assume use of periodic inventory system.

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Originally Posted by Akhatoon

Velez corporation purchased $1000 worth of merchandise, terms 2/10, n/30, from the Manor corporation on May 4, on May 10, Velez returned $100 worth of goods to Manor for full credit.
May 12, the account was paid in full.
Prepare entries in journal form without explanations to record these transactions in
a) velez's records
b) manors records
assume use of periodic inventory system.

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Debit accounts receivables for 1000
Credit purchases for 1000
In terms for 2/10 and n/30
Debit sales return and allowence for 100
And credit accounts receivables for 100
To record return of 100 dollars
Then find the discount 2/10
Then debit 900- discount to cash
Debit the discount to discount expense
Then credit 900 to accounts receivable that's for veles records just do the same but use return allowences for the other guy buying