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Periodic Inventory System Purchasing Discount
At the beginning of the current season on April 1, the ledger of Wichita Pro Shop showed Cash $2,768; Merchandise Inventory $3,500; and Common Stock $6,268. The following transactions were completed during April 2010.
Apr. 5 Purchased golf bags, clubs, and balls on account from Roland Co. $1,555, terms 3/10, n/60 14 Paid Roland Co. in full. So here's my question, right now I have: Debit Acc Payable 1,555 Credit Cash 1,508 (rounded to nearest whole dollar) Credit Purch Disc 47 (rounded to nearest whole dollar) Is this wrong? Every time I try to answer this question online it keeps telling me that it's wrong. Does this change anything: 7 Paid freight on Roland purchase $93 Is this the algebra: 1,555 - 93 = 1,462 * .03 = 44 (rounded to nearest whole dollar) then credit purch disc 44 and cash 1,418 then debit accounts payable 1,462? I am really confused right now because there is another entry like this only that one does not include the whole freight-in entry but the website keeps telling me I'm wrong for that one too. Any advice? |
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