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Cornerstone Exercise 6 - 2 0 Recording Purchase Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the
Cornerstone Exercise
Recording Purchase Transactions
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
a On April Mathis purchased merchandise on account from Reece with credit terms of The selling price of the merchandise was $ and the cost of the merchandise sold was $
b On April Mathis paid freight charges of $ cash to have the goods delivered to its warehouse.
c On April Mathis returned $ of the merchandise which had originally cost Reece $
d On April Mathis paid Reece the balance due.
Required:
Prepare the journal entry to record the April purchase of merchandise and payment of freight by Mathis.
April
Purchased inventory on account
April
Recorded the payment of freight charges
Prepare the journal entry to record the April return of merchandise.
April
Returned merchandise
Prepare the journal entry to record the April payment to Reece. For a compound transaction, if an amount box does not require an entry, leave it blank.
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