Presented below is information related to Chile Co. Journalize purchase transactions. 1. On April 5, purchased merchandise

Question:

Presented below is information related to Chile Co. Journalize purchase transactions. 1. On April 5, purchased merchandise from Graham Company for $16,000, terms 2/10, net/30, FOB shipping point. (LO 6)

. On April 6, paid freight costs of $800 on merchandise purchased from Graham.

. On April 7, purchased equipment on account from Reed Mfg. Co. for $27,000.

. On April 8, returned merchandise, which cost $4,000, to Graham Company.

On hdB&W . OnApril 15, paid the amount due to Graham Company in full.

Instructions

(a) Prepare the journal entries to record these transactions on the books of Chile Co.

using a periodic inventory system.

(b) Assume that Chile Co. paid the balance due to Graham Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

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