Refer to the business situation in Exercise 5-18. Journalize the transactions of Northern Gems Ltd., which uses the periodic inventory system. Explanations are not required.
In Exercise 5-18
On April 30, 2017, Ladysmith Jewellers purchased inventory of $45,000 on account from Northern Gems Ltd., a jewellery importer. Terms were 2/15, net 45. On receiving the goods, Ladysmith checked the order and found $5,500 of unsuitable merchandise. Therefore, Ladysmith returned the merchandise to Northern on May 4, 2017.
On May 14, 2017, Ladysmith Jewellers paid the net amount owed from April 30.