Merchandising Entries

Phillips Co. uses a perpetual inventory system, records purchases at net cost, and recordssales revenue at full invoice price.Record the following transactions in the company's general journal.

July 1 Purchased fiveLorac copying machines on account from Lorac Corp. Total invoice price was Rs.2,000 per machine; terms of 2/10, n/30. These machines are intended for resale.

3 Found one of the Lorac copiers to be defective and returned it to Lorac, thus reducing the amount owed.

9 Sold one of the Lorac copiers to Morris Realty. The sales price was Rs.3, 000, terms 5/10, n/60.

10 Paid the remaining amount owned to Lorac Corp., less the allowable discount.

19 Received full payment from Morris, less the allowable discount.