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    P00245322's Avatar
    P00245322 Posts: 7, Reputation: 1
    New Member
    		  
    #1

    Nov 30, 2009, 09:04 PM
    Merchandise transaction perpetual inventory system
    Sansomite Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Sansomite's inventory consisted of suitcases costing $1,200
    During the month of July the following merchandising transactions occurred:

    July 1 Purchased suitcases on account for $1,800 from Trunk Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $100 for freight on this date.

    July 3 Sold suitcases on account to Satchel World for $2,000 The cost of suitcases sold is
    $1,200

    July 9 Paid Trunk Manufacturers in full.

    How should I post the transaction from July 9?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Dec 1, 2009, 12:13 AM

    Do you know the entry for "paid creditors on account"?
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