Information related to Almond Co. is presented below.
1. On April 5, purchased merchandise from Morris Company for $23,000, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Morris.
3. On April 7, purchased equipment on account for $26,000.
4. On April 8, returned damaged merchandise to Morris Company and was granted a $3,000 credit for returned merchandise.
5. On April 15, paid the amount due to Morris Company in full.
Instructions
(a) Prepare the journal entries to record these transactions on the books of Almond Co. under a perpetual inventory system.
(b) Assume that Almond Co. paid the balance due to Morris Company on May 4 instead of April 15. Prepare the journal entry to record this payment.